Multiple Choice
Which type of business is primarily motivated to earn a profit?
16
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following would be considered a source document in an accounting system?
A
A balance sheet
B
A depreciation schedule
C
A sales invoice
D
A trial balance
Verified step by step guidance1
Understand the concept of a source document: A source document is an original record that contains the details of a business transaction. It serves as evidence for the transaction and is used to record entries in the accounting system.
Review the options provided: A balance sheet, a depreciation schedule, a sales invoice, and a trial balance.
Analyze each option: A balance sheet is a financial statement summarizing assets, liabilities, and equity, not a source document. A depreciation schedule is a record of asset depreciation, also not a source document. A trial balance is a summary of ledger balances, not a source document. A sales invoice, however, is an original document issued to a customer detailing a sale, making it a source document.
Conclude that a sales invoice is the correct answer because it is the original evidence of a transaction and is used to record the sale in the accounting system.
Remember that source documents are critical for maintaining accurate and reliable financial records, as they provide the foundation for all accounting entries.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations