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

Question

Quizplus · Accepted Answer

Source documents are the original records that provide evidence of a transaction, such as invoices, receipts, and bank statements. They are used to ensure accuracy in accounting and provide objective evidence that a transaction has taken place. The chart of accounts and ledger are internal accounting records and not considered source documents. They do not have to be in electronic form to be considered source documents.

A Business's Source Documents