Source documents
A) do not provide objective evidence about transaction
B) are a source of accounting information.
C) can only be in electronic form
D) are only used for audit purposes
E) are acceptable as a substitute for financial statements

Question

Quizplus · Accepted Answer

Source documents are a primary source of accounting information as they contain details about transactions such as date, amount, and description. They serve as evidence of business activities and are necessary to support the preparation of financial statements. Therefore, option B is correct. The other options are incorrect as they provide either incomplete or erroneous information about source documents.

Source Documents