Name two common source documents used in recording transactions.

• A. Cash receipts and cash disbursements.
• B. Bank statements and ledgers.
• C. Sales invoices and purchase invoices; receipts.
• D. Journal entries and ledgers.

Answer: (C)

Source documents are the original evidence that a transaction occurred and provide the details the accountant uses to record entries. Two of the most common ones are sales invoices and purchase invoices, along with receipts. A sales invoice is the bill sent to a customer for goods or services, showing the date, items, quantities, prices, and terms. A purchase invoice comes from a supplier for goods or services received, with similar details. Receipts document cash received and help verify actual cash inflows.

Other options aren’t as directly foundational for recording the core transactions. Bank statements and ledgers aren’t the original proofs of day-to-day events; bank statements are summary records from the bank, and ledgers are the books where entries are posted. Journal entries, while essential, are the internal records created from the source documents, not the initial source documents themselves.