Which of the following is not an example of a source document?
a. Purchase invoice.
b. Chart of accounts.
c. Cash register tape printout.
d. Receipt from sales register at the point of purchase.
e. Check stub.
The Correct Answer and Explanation is :
The correct answer is b. Chart of accounts.
Explanation:
A source document is a physical or electronic document that provides evidence of a transaction that has taken place. These documents are essential for accounting and bookkeeping as they form the basis for journal entries in the accounting system. Source documents ensure accuracy and transparency in the recording of financial transactions.
Let’s break down each option:
- a. Purchase invoice: This is a classic example of a source document. It serves as evidence of a transaction where goods or services have been purchased. The purchase invoice typically includes details like the date of the transaction, the items purchased, quantities, prices, and the total amount due.
- b. Chart of accounts: This is not a source document. The chart of accounts is a listing of all the accounts used in the general ledger of an organization. It acts as a framework for recording financial transactions but does not serve as proof of a transaction itself. Instead, it is a tool for organizing and categorizing financial information.
- c. Cash register tape printout: This is an example of a source document. It records the details of each sale made at a cash register, including items sold, prices, and amounts collected. This printout acts as documentation for the sales transactions processed at a retail location.
- d. Receipt from sales register at the point of purchase: This is another example of a source document. Similar to the cash register tape, a receipt serves as evidence of a completed sale. It typically includes information such as the items purchased, their prices, the total amount, the date, and the method of payment.
- e. Check stub: This is also an example of a source document. A check stub provides details about a payment made via check, including the amount, the recipient, and the purpose of the payment. It helps in tracking and verifying payments made by the business.
Conclusion:
While the chart of accounts is an essential part of accounting systems, it is not a source document. Source documents are primarily used to verify individual transactions, while the chart of accounts is a list of categories for organizing and tracking those transactions.