Which of the Following Statements Is True Regarding Simple and Compound

question 58

Multiple Choice

Which of the following statements is true regarding simple and compound entries?

• A) Simple entries can be prepared by anyone whereas compound entries need to be prepared by a skilled accountant.
• B) Simple entries are recorded on the income statement whereas compound entries are recorded on the statement of financial position.
• C) Simple entries involve one account, whereas compound entries involved 2 or more accounts.
• D) An example of a compound entry would be the purchase of a machine for $400 cash and a $2,000 note payable.