Concept explainers
Identifying source documents C1
Identify the items from the following list that are likely to serve as source documents.
a. Sales receipt
b.
c. Balance sheet
d. Prepaid insurance account
e. Invoice from supplier
f. Company revenue account
g.Income statement
h. Bank statement
i. Telephone bill
Introduction:
The documents which have the original entry of transaction in an accounting system are known as the source documents.
To identify:
The source documents from the given list of documents.
Answer to Problem 1QS
The correct answer is option (e) Invoice from supplier.
Explanation of Solution
Explanation for correct answer: The invoice from the supplier always has the full details of transaction.
Explanation for incorrect answers: The remaining options are incorrect as all of them do not have the proper details of transaction that a source of document must have.
Conclusion:
As the invoice from supplier has the right and proper details of any transaction so it can be said to serve as source documents.
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Chapter 2 Solutions
FUND.ACCT.PRIN.(LOOSELEAF)-W/CONNECT
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