Which item would be considered a source document?

Which item would be considered a source document?

• A. Balance sheet
• B. Invoices
• C. Income statement
• D. Payroll record

Answer: (B)

A source document is the original record that provides evidence of a business transaction and is used to start the accounting cycle. An invoice fits this role perfectly because it documents a sale or purchase, shows essential details like date, parties, items or services, quantities, and amounts, and prompts the initial journal entry (for example, recording revenue and either accounts receivable or accounts payable). The other options are financial statements or records not used to prove a single transaction entering the ledger. A balance sheet and an income statement summarize information after posting, while a payroll record is also a legitimate supporting document but is less universally cited as the basic example of a source document in introductory material. In the typical foundational sense, invoices are the classic source document because they directly originate the postings for revenue and expenses.

A source document is the original record that provides evidence of a business transaction and is used to start the accounting cycle. An invoice fits this role perfectly because it documents a sale or purchase, shows essential details like date, parties, items or services, quantities, and amounts, and prompts the initial journal entry (for example, recording revenue and either accounts receivable or accounts payable).

The other options are financial statements or records not used to prove a single transaction entering the ledger. A balance sheet and an income statement summarize information after posting, while a payroll record is also a legitimate supporting document but is less universally cited as the basic example of a source document in introductory material. In the typical foundational sense, invoices are the classic source document because they directly originate the postings for revenue and expenses.