Question

+1 accountcy 15 transactions question and answer

Answer 1

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Answer 2

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Q. Why is the evidence provided by source documents important to accounting?

ANSWER:

1) The evidence provided by the source document is important in the following manners:

2) It provides evidence that a transaction has actually occurred.

3) It provides important and relevant information about date, amount, parties involved and other details of a particular transaction.

4) It acts as a proof in the court of law.

5) It helps in verifying transactions during the auditing process.