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:

Par Value

A nominal value assigned to a share of stock in the charter of a corporation, which is the minimum legal capital per share.

Common Share

A unit of equity ownership in a corporation, granting holders voting rights and a share in the profits through dividends.

Noncumulative

A term often used in the context of preferred stock dividends that indicates dividends not paid in one period do not need to be paid in future periods.

Nonparticipating

Refers to an insurance policy, financial instrument, or other contracts that do not entitle the holder to share in the profits or surplus of the issuer.