Future Business Leaders of America (FBLA) Accounting Practice Test

What is a business paper from which information is obtained for a journal entry known as?

1. Invoice

2. Source Document

3. Check

4. Receipt

The correct answer is: Source Document

A business paper from which information is obtained for a journal entry is known as a source document. Source documents play a critical role in the accounting process as they provide the evidence needed to support the transactions recorded in the accounting system. These documents can take various forms, such as invoices, checks, receipts, and others, depending on the nature of the transaction. Source documents contain essential information like dates, amounts, parties involved in the transaction, and descriptions of what occurred. This information is vital for ensuring accuracy in recording entries into the journal, maintaining accountability, and complying with accounting standards and regulations. Invoices, checks, and receipts are all specific examples of source documents, but the term "source document" encompasses any original document that serves as a record of a business transaction. Hence, it is the most appropriate term to refer to the general category of documents from which journal entries are derived.