Which of the Following Is True of Source Documents in an Accounting

question 37

Multiple Choice

Which of the following is true of source documents in an accounting information system?

• A)All journal entries can be considered as source documents in an accounting information system.
• B)Source documents provide control and reliability in an accounting information system.
• C)A manual document cannot be considered as a source document in an accounting information system.
• D)In a manual accounting information system,source documents refer to financial statements.

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Definitions:

Interest Payment

A payment made to a lender by a borrower as compensation for the use of borrowed money, typically expressed as an annual percentage of the loan balance.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is instead issued at a deep discount to its face value.

Implicit Interest

The cost of borrowing that is not explicitly stated as an interest rate, often factored into the terms of leases or other financial agreements.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its legal worth.