Test Your Knowledge - Source Documents & Books of Original Entry

What is the main purpose of a source document?

To record financial transactions
To summarize financial statements
To balance the books

Which of the following is a source document?

Invoice
Cashbook
Trial balance

Which book of original entry records all cash transactions?

Sales Journal
Cashbook
General Ledger

What type of transaction is recorded in a sales journal?

Credit sales
Cash purchases
Cash sales

The purchase journal is used to record:

Credit purchases
Cash purchases
Capital investments

What is the source document for a credit purchase transaction?

Invoice
Receipt
Cheque

The cash book records:

Only cash receipts
Both cash receipts and cash payments
Credit transactions

The general journal is used to record:

Cash transactions only
Non-routine transactions
Sales transactions

Which of the following documents is used as proof for a payment made by cheque?

Receipt
Bank statement
Cheque stub

The term "books of original entry" refers to:

Financial statements
Journals where transactions are first recorded
General ledger accounts

Test Your Knowledge - You have 10 questions!