Chapter 2 - Accounting Information System (AIS)

Question 1

Explain what is a cash transaction and a credit transaction is.

Answer 1

Cash Transaction - Payment is made during or immediately after a cash sale or purchase.

Credit Transaction - Payment is delayed or postponed during a credit sale or purchase.

Question 2

What is a source document?

Answer 2

A source document captures information about a business transaction and provide evidence that the transaction has occurred.

Question 3

State 2 purposes of a source document

Answer 3

• Enables the checking of accounts

- serves as evidence that transaction has occurred.