Source documents are a primary source of accounting information that provide objective evidence about transactions. They are used to support the entries made in accounting records and are essential for accurate bookkeeping. Source documents can be in both physical and electronic form. They are not a substitute for financial statements but are used to prepare them.

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Source Documents

Question 172

Multiple Choice

Source documents:

A) Do not provide objective evidence about transactions.
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.

Correct Answer: