Which of the Following Would Require a Compound Journal Entry

question 98

Multiple Choice

Which of the following would require a compound journal entry?

• A) To record merchandise returned that was previously purchased on account.
• B) To record sales on account.
• C) To record purchases of inventory when a discount is offered for prompt payment.
• D) To record collection of accounts receivable when a cash discount is taken.

Understand measures for safeguarding information in organizations and the role of policies in guiding technology use.

Recognize the limitations of virtual communication in effectively replacing face-to-face interactions in certain contexts.

Understand the nuances of message delivery and scanning behavior in online content.

Discern the suitability of communication channels for different message types and organizational purposes.

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Definitions:

Automatic Novation Clause

A contractual clause wherein all parties agree to automatically substitute a new contract or contractual obligation for an old one.

Promoter

A person who organizes and operates a business venture and assumes much of the associated risk.

Contract

A legally upheld agreement involving two or more entities that carries legal obligations.

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet formally established, raising questions about liability and authority.