Multiple choice

Source documents

  1. are statements of equality between debit and credit.

  2. refer to a special journal in which the the credit sales are recorded.

  3. refer to a book in which cash receipts and payments are recorded.

  4. are basis and evidence of a business transaction recorded in the accounts book.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Source documents are the basis for recording a transaction in a books of account, which is a proof that a transaction has taken place. For ex- vouchers, invoices, cash memos etc.

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