In recording business transactions evidence that an accounting transaction has taken place is obtained from
A) business documents.
B) the Internal Revenue Service.
C) the public relations department.
D) the SEC.

Question

Quizplus · Accepted Answer

Business documents such as invoices, receipts, contracts, and bank statements provide evidence that a transaction has occurred and they are used as a source document in recording the transaction in the accounting system. The Internal Revenue Service (IRS), public relations department, and the SEC (Securities and Exchange Commission) are not sources of evidence for accounting transactions.

In Recording Business Transactions Evidence That an Accounting Transaction Has