Given the defintion below, I (no expert!) would say yes.

In computing, a compound document is a document type typically produced
using word processing software, and is a regular text document intermingled
with e.g. spreadsheets, pictures, digital videos, digital audio, and other
multimedia features. It can also be used to collect several documents into
one.



"MeghanQuerry" wrote:

I am working with compound documents and I am not sure if an external excel
spreadsheet linked into a word document can be a compound document. Why or
why not? Please explain because I am so lost.