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 records of all increases and decreases in specific asset.
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 purchase orders. They are essential in accounting as they serve as proof of the transactions recorded in financial statements. The other options listed are not correct as the ledger and chart of accounts are not source documents, all source documents do not have to be in electronic form, and while specific assets may be recorded in source documents, they are not the sole focus of them.

A Business's Source Documents