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

question 122

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:

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between its selling price and its face value.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributed to each outstanding share of common stock, used to gauge a company's profitability.

Bond Indenture

A legal contract between a bond issuer and bondholders detailing the characteristics of the bond, such as its maturity date, coupon rate, and payment schedule.

Bond Issuer

An entity, such as a corporation or government, that creates and sells bonds to finance its projects and operations.