Understanding Source Documents

What are source documents primarily used for in accounting?

• To create financial statements

• To confirm or witness transactions

• To calculate taxes

• To manage payroll

What is a purchase invoice?

• A document for employee records

• A document for tax calculation

• A document confirming a purchase

• A document confirming a sale

What is the purpose of a purchase order?

• To confirm the details of a purchase

• To calculate discounts

• To record employee attendance

• To manage inventory

What is a cash memo also known as?

• A purchase order

• A debit note

• A sales bill

• A credit note

What additional information does a credit memo contain compared to a cash memo?

• Details of the buyer

• Details of the seller

• Discounts offered

• Tax rates

Why is a debit note issued?

• To confirm a purchase

• To adjust amounts on an invoice

• To record a cash sale

• To calculate taxes

What does a credit note signify?

• An adjustment of a debt

• A record of a cash sale

• A calculation of taxes

• A confirmation of a purchase

What is a petty cash voucher used for?

• To record sales

• To track large expenses

• To track small expenses

• To calculate taxes

What is the purpose of a cash voucher?

• To calculate payroll

• To record bank transactions

• To document cash payments

• To track petty expenses

What information is typically found on a receipt?

• Employee details

• Tax rates

• Details of the seller

• Name and address of the payer