Source documents identify and describe business transactions and are the basis for accounting entries.

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Source documents are used to record business transactions and are the basis for accounting entries. They provide details about the nature, amount, date, and parties involved in a transaction. Examples of source documents include invoices, receipts, bank statements, and purchase orders. Without source documents, it would be difficult to accurately record and document business transactions.

Source Documents Identify and Describe Business Transactions and Are the Basis