BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a memorandum
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an invoice
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a receipt
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a check
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Detailed explanation-1: -A cash voucher is prepared for cash purchases or sales. It serves as the source document to record entries in the cash book.
Detailed explanation-2: -Cash Receipt A receipt is a financial source document that provides proof that cash was transferred from one party to the other. The receipt contains the names of the two parties involved in the transaction, the date, the amount of money transferred and the currency.
Detailed explanation-3: -In the accounting industry, source documents include receipts, bills, invoices, statements, checks – i.e., anything that documents a transaction. Any time a business spends or receives money, a source document is created.
Detailed explanation-4: -A check is the source document used when items are paid for in cash. The source document for all cash payments is a sales invoice.
Detailed explanation-5: -An invoice is a source document that shows all details of the sale, including payment terms. These details are entered as a sales invoice by the seller, and a purchase invoice by the buyer.