All of the Following Statements Regarding Source Documents Are True

question 2

Multiple Choice

All of the following statements regarding source documents are true except:

• A)Source documents provide the basic information processed by an accounting system.
• B)Source documents include invoices,cash register files,and employee earnings records.
• C)Source documents should not be sent directly from a company's system to its customers or suppliers.
• D)Source documents can be paper or electronic files.
• E)Source documents can include Web communications.

---

Definitions:

Available-for-sale Securities

Financial assets that are bought with the intention of selling before their maturity date, but not classified as held-for-trading or held-to-maturity investments.

Stockholders' Equity

It represents the ownership interest of shareholders in the assets of a company, after deducting liabilities.

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.

Available-for-sale Securities

Financial assets that are neither held for trading nor intended to be held to maturity, and can be sold in response to needs for liquidity or changes in interest rates.