Explain the importance of source documents


Response to the following questions:

1. Identify examples of accounting source documents.

2. Explain the importance of source documents.

3. Identify each of the following as either an asset, a liability, or equity: (a) Prepaid Rent, (b) Unearned Fees, (c) Building, (d) Wages Payable, and (e) Office Supplies.

4. What is an account? What is a ledger?

5. What determines the number and types of accounts a company uses?

6. Does debit always mean increase and credit always mean decrease?

7. Describe a chart of accounts.

 

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Accounting Basics: Explain the importance of source documents
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