A business's source documents:
A)include the ledger.
B)Provide objective evidence that a transaction has taken place.
C)must be in electronic form.
D)are prepared internally to ensure accuracy.
E)include the chart of accounts.

Question

Quizplus · Accepted Answer

Source documents provide objective evidence that a transaction has taken place, such as receipts, invoices, and bank statements. The ledger and chart of accounts are not considered source documents as they are used internally to record and classify transactions. There is no requirement for source documents to be in electronic form, and while internal preparation may ensure accuracy, it is not a defining characteristic of a source document.

A Business's Source Documents