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 a receipt, invoice, or purchase order. The ledger and chart of accounts are not source documents, and source documents do not have to be in electronic form. While businesses may prepare their own source documents internally, the purpose is to record transactions accurately rather than ensure accuracy beforehand.

A Business's Source Documents