Question

1. Why source documents are important in accounting as evidence?​

Answer 1

Answer:

Importance of Source Documents

Importance of Source Documents: The source document is essential to the bookkeeping and accounting process as it provides evidence that a financial transaction has occurred. ... If your taxes are audited, the source documents provide the proof that you've made those purchases.

Answer 2

It provides evidence that a transaction has actually occurred. It provides important and relevant information about date, amount, parties involved and other details of a particular transaction. It acts as a proof in the court of law. It helps in verifying transactions during the auditing process.