Business Papers, Such as Checks, Invoices, Receipts, Letters, and Memos

question 47

Multiple Choice

Business papers, such as checks, invoices, receipts, letters, and memos, that furnish proof that a transaction has taken place are called:

• A)source documents
• B)accounts
• C)debits
• D)ledgers

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Definitions:

Inventory Cost Method

An accounting technique used to determine the value of a business's inventory and cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out) methods.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a specific period.

LIFO

An acronym for "Last In, First Out," a method used in inventory management and accounting to value inventory and calculate cost of goods sold.

Taxable Income

Taxable income is the amount of an individual's or a company's income used to calculate how much tax they owe to the government in a given tax year.