In an accounting system, the document which supports journal entries is classified as _____________?
Correct answer: C. source document
- A. cost document
- B. priced document
- C. source document
- D. direct document
Explanation
A source document provides the original evidence for a transaction, such as an invoice, receipt, or voucher, and supports the related journal entry. The other terms are not standard names for this evidence.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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