Chapter 3 - Analyzing Changes In Financial Position Flashcards
0
Q
What is a source document
A
It is the original record of a transaction which provides accounting personnel with the information they need to process the transaction properly
1
Q
What is a business transaction?
A
It is a financial event that causes a change in financial position
2
Q
What happens to source documents once they are not needed?
A
They are filed away because owners, managers, auditors, and others may want to ask questions
3
Q
What is the objectivity Principle?
A
Transactions will be recorded on fact, not personal opinions or feelings
