According to Accounting Tools, a compound entry is a type of data entry in which multiple journal entries of credits and debits are combined into one entry. These types of entries are commonly used when the original journal entries come from the same event. They are also used when the business transactions related to the entries are more efficiently understood as an aggregate of similar entries.Know More
Accounting entries consist of debits, which are a marked increase in an asset or expense account, and credits, which are marked increases in a liability or equity account. Any single journal entry which combines multiple credits, multiple debits or a combination of more than one of either of the two, is considered a compound entry.
There are a number of reasons that an accounting firm or the accounting department of a corporation might choose to use compound entries instead of standalone entries. When standalone entries would provide disorganized and inefficient methods of bookkeeping for a series of events, such as the accrual or depreciation of an asset, compound entries are used instead. Compound entries are also used when multiple credits and debits stem from a single event. Examples of these types of compound entries include a list of all payroll expenses, all invoices related to a single customer transaction and all reductions from a bank reconciliation.Learn more about Accounting
A trial balance is used to check the accuracy of all ledger accounts normally at the end of an accounting period; the worksheet divides a company's accounts into credit and debits in an easy to read format. The balance sheet's aim is to equate the numbers in the two columns until both sections are equal, ensuring that there are no discrepancies or mathematical errors, as noted by Investopedia.Full Answer >
A post-closing trial balance includes information such as account names, debits, credits, assets, liabilities and equities. It is virtually the same as all the other trial balances in the accounting cycle.Full Answer >
The U.S. Bureau of Labor Statistics describes an auditor as a type of accountant that specializes in the examination of financial documents. Auditors scrutinize records for accuracy, look for signs of mismanagement and identify wasteful business practices. Some auditors work solely with computer systems, ensuring the accuracy and reliability of digital financial data.Full Answer >
The specific activities of an accountant vary based on employment type; however, accountants generally record financial transactions and prepare reports for employers or clients. Common accounting roles include management accountant, public accountant and government accountant.Full Answer >