Selecting source documents and working forward to follow the transaction through to recording in the journal and ledger is called _______.
A)tracing
B)vouching
C)inquiring
D)observing

Question

Quizplus · Accepted Answer

Tracing involves selecting source documents and following the transaction through to recording in the journal and ledger. Vouching, on the other hand, involves selecting entries in the journal and ledger and tracing back to the source documents to verify the accuracy of the transactions. Inquiring and observing are not related to the process of selecting source documents and following the transaction through to recording in the journal and ledger.

Selecting Source Documents and Working Forward to Follow the Transaction