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:

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties.

Unamortized Patent

The portion of a patent's cost that has not yet been expensed in the income statement over its useful life.

Amortization Expense

The systematic allocation of the cost of an intangible asset over its useful life.

Fair Value

The proceeds from liquidating an asset or the fees involved in transferring a liability during a regular transaction with engaged market members on the bookkeeping date.