A Compound Entry Is

question 117

Multiple Choice

A compound entry is

• A) a transaction involving more than one debit and/or credit.
• B) used to prepare the trial balance.
• C) the same as the chart of accounts.
• D) found on the income statement.

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Definitions:

Mental Accounting

A concept in behavioral economics that refers to the different values people place on money, based on subjective criteria, affecting economic decision-making.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses, often leading to statistical errors.

Affect Heuristic

A mental shortcut used in decision making and judgement that involves relying on emotions and feelings.

Regret Aversion

A theory in behavioral economics that describes the emotional reaction people experience after realizing they have made an error in judgment, leading them to avoid making decisions.