Meaning of Source Documents - SS1 Accounting Past Questions and Answers - page 1
What are source documents?
Materials or records that provide evidence of a transaction or event
Materials or records that provide evidence of an employee's work hours
Materials or records that provide evidence of a company's assets
What is the purpose of source documents?
To provide a verifiable and reliable record of transactions and events
To replace financial statements and tax returns
To facilitate employee performance evaluations
Which of the following is an example of a source document?
Employee evaluation form
Sales report
Invoice
Why are source documents important in accounting?
They help ensure accuracy and completeness in accounting records
They are required by law for every business transaction
They are used to calculate employee salaries
How can source documents be used to support financial statements?
Source documents provide information such as the date, amount, and description of a transaction, as well as the names of the parties involved. This information can be used to support financial statements by providing evidence of the transactions recorded in those statements.
How do source documents facilitate the auditing process?
Source documents provide a verifiable and reliable record of transactions and events, which can be used to support the accuracy of accounting records. This makes the auditing process easier and more efficient, as auditors can rely on the information contained in the source documents to verify the accuracy of the accounting records.