Future Business Leaders of America (FBLA) Accounting Practice Test

What term best describes an evidence of a sale that also serves as a record for accounting purposes?

1. Source Document

2. Sales Invoice

3. Check

4. Payment Receipt

The correct answer is: Sales Invoice

The term that best describes an evidence of a sale that also serves as a record for accounting purposes is a sales invoice. A sales invoice is a detailed document issued by a seller to a buyer that outlines the products or services provided, the amount owed, the terms of payment, and the date of the transaction. It serves not only as proof that a sale took place but also functions as a key source document for accounting. This document allows businesses to track revenue, manage accounts receivable, and maintain accurate financial records. In this context, while a source document is a general term for any document that provides evidence of a transaction, a sales invoice is a specific type of source document that relates directly to sales transactions. Other documents, such as checks or payment receipts, are related to payment processes but do not provide the comprehensive details of the sale itself. A check typically represents a payment rather than the record of the sale, and a payment receipt confirms that the payment was made but does not detail the sale transaction as thoroughly as a sales invoice does. Thus, a sales invoice stands out as the most precise answer to the question.