Source documents provide information that serves as the basis for entries into the accounting system.Examples of source documents include invoices and deposit tickets.

Question

Quizplus · Accepted Answer

This is true.To simplify recordkeeping,businesses rely on source documents,such as cash register tapes,invoices,time cards,check registers,and deposit tickets.Data from source documents are initially recorded in journals and then they are entered into ledger accounts in the general ledger.

Source Documents Provide Information That Serves as the Basis for Entries