Which of the following is known as an evidence that a transaction took place?
Correct answer: A. Source document
- A. Source document
- B. General journal
- C. Cash receipts journal
- D. Cash book
Explanation
A source document, such as an invoice, receipt, or cheque counterfoil, provides the original evidence that a transaction occurred. Journals and cash books 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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