When Three or More Accounts Are Required in One Journal

question 195

Multiple Choice

When three or more accounts are required in one journal entry the entry is referred to as a

• A) compound entry.
• B) triple entry.
• C) multiple entry.
• D) simple entry.

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Definitions:

Discharge

The completion, termination, or fulfillment of a legal obligation, duty, or contract.

Negotiable Instrument

A written promise or order to pay a specific sum of money that is transferable from one person to another.

Reacquisition

The process of buying back or otherwise regaining possession of something previously sold, lost, or given away.

Instrument

A formal legal document, such as a contract, will, bond, lease, or loan, that establishes legal rights and obligations.