Why is the evidence provided by source documents important to accounti

1.	Why is the evidence provided by source documents important to accounting?
Answer» The evidence provided by the source document is important in the following manners: • It provides evidence that a transaction has actually occurred. • It provides important and relevant information about date, amount, parties involved and other details of a particular transaction. • It acts as a proof in the court of law. • It helps in verifying transactions during the auditing process.

Why is the evidence provided by source documents important to accounting?

Answer»

The evidence provided by the source document is important in the following manners:

• It provides evidence that a transaction has actually occurred.

• It provides important and relevant information about date, amount, parties involved and other details of a particular transaction.

• It acts as a proof in the court of law.

• It helps in verifying transactions during the auditing process.