Accounting Source Documents Quiz
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Source documents play a crucial role in the accounting industry as they contain details of all business transactions. Try this 'Accounting source documents quiz' that is designed to test your knowledge about source documents and their related concepts. Give it a try and see how many correct answers you can give in this test. Your final scores will be displayed at the end of the quiz. So, get ready to play this quiz.
Questions and Answers
- 1.
The document issued with a sale is __________
- A.
Recorded by the seller as a purchase invoice
- B.
Recorded by the seller as a check
- C.
Recorded by the seller as a sales invoice
- D.
Not recorded by the seller
Correct Answer
C. Recorded by the seller as a sales invoiceExplanation
When a sale is made, the seller issues a document called a sales invoice. This document serves as proof of the sale and includes details such as the date, items sold, quantity, price, and any applicable taxes or discounts. The seller records this sales invoice in their records to keep track of the transaction and for accounting purposes. It helps the seller maintain an accurate record of their sales and also serves as a reference for future communication with the buyer, such as payment reminders or warranty claims.Rate this question:
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- 2.
What should be done with the source documents?
- A.
They should be filed away and kept for at least 5 years
- B.
Shredded for privacy as soon as possible
- C.
Given to the bank
- D.
Disposed off
Correct Answer
A. They should be filed away and kept for at least 5 yearsExplanation
The correct answer is to file away the source documents and keep them for at least 5 years. This is important for record-keeping and compliance purposes. By keeping the source documents, businesses can refer back to them if needed and ensure that they have a complete and accurate record of their transactions. Additionally, certain legal and regulatory requirements may mandate that businesses retain these documents for a specific period of time.Rate this question:
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- 3.
There are many different types of accounting documents. True or false?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "There are many different types of accounting documents" is true. Accounting documents include financial statements, invoices, receipts, bank statements, purchase orders, and many others. These documents are used to record and track financial transactions, provide evidence of transactions, and ensure accuracy in financial reporting. Therefore, it is correct to say that there are indeed many different types of accounting documents.Rate this question:
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- 4.
Accounting source documents are commonly called _______.
- A.
The books
- B.
The Money
- C.
The Paperwork
- D.
The paperload
Correct Answer
C. The PaperworkExplanation
Accounting source documents are commonly referred to as "The Paperwork" because they are the physical or electronic records that provide evidence of financial transactions. These documents include invoices, receipts, bank statements, purchase orders, and any other supporting documents that are used to record and verify the financial activities of a business. "The Paperwork" accurately describes the documentation and paperwork involved in the accounting process.Rate this question:
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- 5.
Bills can only be paid by internet banking. True or false?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement "Bills can only be paid by internet banking" is false. Bills can be paid through various other methods such as cash, check, credit or debit cards, mobile payment apps, or in-person at a payment center. Internet banking is just one of the available options for bill payment, but not the only method. Therefore, the correct answer is False.Rate this question:
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- 6.
A source document is:
- A.
The origin of the information that is recorded into the accounting books
- B.
The origin of the information that is taken from the accounting books
- C.
Not the origin of information that is recorded into the accounting books
- D.
All of the above
Correct Answer
A. The origin of the information that is recorded into the accounting booksExplanation
A source document refers to the original document that provides the information recorded into the accounting books. It is the starting point or origin of the information that is later recorded. This document could be a sales invoice, receipt, bank statement, or any other document that supports the financial transactions being recorded. Therefore, the correct answer is "The origin of the information that is recorded into the accounting books."Rate this question:
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- 7.
Credit notes are issued when ________.
- A.
The seller delivers goods to the purchaser
- B.
Goods are returned to the seller by the purchaser
- C.
There is not enough money in the bank
- D.
The goods are purchased back by the seller
Correct Answer
B. Goods are returned to the seller by the purchaserExplanation
Credit notes are issued when goods are returned to the seller by the purchaser. This is because when goods are returned, the seller needs to provide a credit note to the purchaser as a proof of the return and to adjust the amount owed by the purchaser. Credit notes are used to reduce the amount payable by the purchaser or to provide a refund for the returned goods.Rate this question:
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- 8.
Who gets the document?
- A.
The business issuing the document
- B.
The business receiving the document
- C.
Usually both businesses involved in the transaction
- D.
None of the above
Correct Answer
C. Usually both businesses involved in the transactionExplanation
In most cases, both businesses involved in the transaction receive the document. This is because the document serves as a record of the transaction and is important for both parties to have for their own records. It helps in maintaining transparency and accountability between the businesses. Additionally, having the document ensures that both parties have a clear understanding of the terms and conditions of the transaction and can refer to it if any disputes or issues arise in the future.Rate this question:
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- 9.
What is common about source documents?
- A.
The bookkeeper’s name, the amount, a transaction date, a reference number
- B.
A transaction date, the amount, a description of the transaction, the document shape
- C.
The amount, the names of both businesses, a date, a description of the transaction
- D.
None of the above
Correct Answer
C. The amount, the names of both businesses, a date, a description of the transactionExplanation
Source documents typically include the amount of the transaction, the names of both businesses involved, a date indicating when the transaction occurred, and a description providing details about the transaction. These common elements help provide a clear record of the transaction and ensure accuracy in the bookkeeping process.Rate this question:
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- 10.
Which of these is NOT an accounting source document?
- A.
Invoices
- B.
Credit memos
- C.
Deposit slips
- D.
Cash Book
Correct Answer
D. Cash BookExplanation
A cash book is not considered an accounting source document because it is a ledger that records all cash transactions, including receipts and payments. Source documents, on the other hand, are the original records that provide evidence of a transaction, such as invoices, credit memos, and deposit slips. These documents are used to support the entries made in the cash book and other accounting records. Therefore, the cash book itself is not a source document but rather a summary of the cash transactions recorded in the source documents.Rate this question:
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- 11.
A _______ describes the items shipped to a customer, and so supports the recordation of a sale transaction.
- A.
Packing slip
- B.
Credit note
- C.
Selling slip
- D.
Cash memo
Correct Answer
A. Packing slipExplanation
A packing slip is a document that describes the items that are being shipped to a customer. It includes details such as the quantity, description, and sometimes the price of the items. By providing this information, a packing slip supports the recordation of a sale transaction because it serves as proof of what was sent to the customer. This document is typically included in the shipment to ensure accuracy and to assist with inventory management and customer satisfaction.Rate this question:
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- 12.
Which of these documents can be used as evidence for the disbursement of funds from petty cash?
- A.
Cash register tape
- B.
Credit card receipt
- C.
Supplier invoice
- D.
Sales order
Correct Answer
B. Credit card receiptExplanation
A credit card receipt can be used as evidence for the disbursement of funds from petty cash because it provides a record of a transaction where funds were used. It shows the amount paid, the date of the transaction, and the items or services purchased. This receipt can be used to track and reconcile petty cash expenses, ensuring that the funds are being used appropriately and accounted for accurately.Rate this question:
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- 13.
Which of these documents can be used as evidence of cash sales, which supports the recordation of a sale transaction?
- A.
Credit card receipt
- B.
Cash register tape
- C.
Lockbox check images
- D.
Deposit slips
Correct Answer
B. Cash register tapeExplanation
Cash register tape can be used as evidence of cash sales because it provides a detailed record of each transaction made at the cash register. It includes information such as the date, time, and amount of each sale, as well as any discounts or taxes applied. This document is commonly used by businesses to reconcile their cash sales and ensure accuracy in their financial records. It serves as a reliable source of evidence for documenting and recording sales transactions involving cash.Rate this question:
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- 14.
Accounting source documents can be categorized into two categories. What are those?
- A.
Internal
- B.
External
- C.
Outsourcing
- D.
Economic
Correct Answer(s)
A. Internal
B. ExternalExplanation
Accounting source documents can be categorized into two categories: internal and external. Internal source documents are generated within the organization and include documents such as purchase orders, invoices, and payroll records. These documents provide evidence of transactions and activities that occur within the company. On the other hand, external source documents are received from external parties and include documents such as bank statements, supplier invoices, and customer receipts. These documents provide evidence of transactions and activities that involve external parties. Categorizing accounting source documents into internal and external helps in organizing and analyzing financial information effectively.Rate this question:
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Current Version
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Aug 18, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 14, 2014Quiz Created by
Sarah
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