_________ is the evidence that a transaction took place?
Correct answer: A. Source documents
- A. Source documents
- B. Ledger
- C. Bonds
- D. Journals
Explanation
Source documents, such as invoices, receipts, and vouchers, provide evidence that a transaction occurred and support its journal entry. Journals and ledgers are accounting records prepared from that 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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Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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