A Business's Source Documents

question 195

Multiple Choice

A business's source documents:

• A)include the ledger.
• B)Provide objective evidence that a transaction has taken place.
• C)must be in electronic form.
• D)are prepared internally to ensure accuracy.
• E)include the chart of accounts.

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Definitions:

Boot

Additional cash or property added to an exchange or trade to make the value of the traded goods equal, commonly used in real estate and barter transactions.

Gain

An increase in wealth or resources, often resulting from a favorable difference between the purchase price and the selling price of assets.

Professional Contract

A written agreement detailing the terms of engagement between a professional service provider and their client or employer.

Accounting Records

Documents that businesses use to track their financial transactions and positions, essential for preparing financial statements and ensuring compliance.