Which of the following is NOT considered a source document?

Which of the following is NOT considered a source document?

• A. Purchase orders
• B. Reports
• C. Receipts
• D. Inspection records

Answer: (B)

The option identified as the correct answer, which is reports, is not considered a source document because it typically summarizes or analyzes data collected from various other documents and does not serve as the initial evidence of a transaction or activity. Source documents are essential records that provide the fundamental details required to substantiate and trace transactions, serving as proof of the activities conducted. On the other hand, purchase orders, receipts, and inspection records all qualify as source documents. Purchase orders serve as formal requests for products or services and record the specifics of the procurement transaction. Receipts provide formal acknowledgment of a transaction where payment has been made, thereby affirming the exchange of goods or services. Inspection records document the examination of products or services to ensure compliance with standards, thus capturing the results of quality checks that occur in the acquisition process. Reports, while valuable for analysis and decision-making, do not function as primary evidence of transactions themselves, which is why they do not fall under the category of source documents.

The option identified as the correct answer, which is reports, is not considered a source document because it typically summarizes or analyzes data collected from various other documents and does not serve as the initial evidence of a transaction or activity. Source documents are essential records that provide the fundamental details required to substantiate and trace transactions, serving as proof of the activities conducted.

On the other hand, purchase orders, receipts, and inspection records all qualify as source documents. Purchase orders serve as formal requests for products or services and record the specifics of the procurement transaction. Receipts provide formal acknowledgment of a transaction where payment has been made, thereby affirming the exchange of goods or services. Inspection records document the examination of products or services to ensure compliance with standards, thus capturing the results of quality checks that occur in the acquisition process.

Reports, while valuable for analysis and decision-making, do not function as primary evidence of transactions themselves, which is why they do not fall under the category of source documents.