What is an example of a "source document"?

What is an example of a "source document"?

• A. An invoice from a supplier
• B. A policy manual for staff
• C. A promotional email to customers
• D. An annual financial report

Answer: (A)

A source document is defined as an original document that serves as evidence for a transaction and provides detailed information that is essential for record-keeping and auditing purposes. An invoice from a supplier is a prime example of a source document because it includes critical information such as the items purchased, quantities, prices, and terms of the transaction. This document is foundational in verifying the procurement of goods or services, tracking expenses, and ensuring the accuracy of accounting records. In contrast, the other options represent different types of documents. A policy manual for staff outlines internal policies and procedures but does not directly pertain to specific financial transactions. A promotional email to customers is focused on marketing efforts and is not a transactional record. An annual financial report summarizes the financial activity over a period but is based on many source documents rather than acting as one itself. Thus, the invoice as a source document directly links to individual transactions, making it integral for material management processes.

A source document is defined as an original document that serves as evidence for a transaction and provides detailed information that is essential for record-keeping and auditing purposes. An invoice from a supplier is a prime example of a source document because it includes critical information such as the items purchased, quantities, prices, and terms of the transaction. This document is foundational in verifying the procurement of goods or services, tracking expenses, and ensuring the accuracy of accounting records.

In contrast, the other options represent different types of documents. A policy manual for staff outlines internal policies and procedures but does not directly pertain to specific financial transactions. A promotional email to customers is focused on marketing efforts and is not a transactional record. An annual financial report summarizes the financial activity over a period but is based on many source documents rather than acting as one itself. Thus, the invoice as a source document directly links to individual transactions, making it integral for material management processes.