Question

Transactions should be based on verifiable documents

Answer 1

Explanation:

This concept states the obvious assumption that the accounting transaction recorded should be objective, i.e. free from any bias of the person recording it. So each transaction should be verifiable by supporting documents like vouchers, bills, letters, challans, certificates, invoices etc

Answer 2

Explanation:

In historical cost accounting, the accounting data are verifiable since the transactions are recorded on the basis of source documents such as vouchers, receipts, cash memos, invoices, etc.

This concept states the obvious assumption that the accounting transaction recorded should be objective, i.e. free from any bias of the person recording i