Unit 4 The Accounting Cycle

What are Source Documents?* Invoice * Receipt  * Deposit Slip * Check Counterfoil  * Statement * Payment Confirmation

Why do we have Source Documents?* The first documents that exist relating to the transaction.* Serve as proof for a transaction.      - Include date and time

Invoices:* Normally relate to credit transactions* List goods or services provided and their prices.* Suppliers normally send an invoice with goods (or once service has been delivered)* Indicate payment terms(time) * "Bills"

Receipts:* Confirm that services or goods have been received* Normally related to cash transactions

Deposit Slip:* Proof that cash has been deposited in a bank account

Check Counterfoil: * This is the part of the check kept by the drawer (writer) of the check as a record of the transaction

Statement: * A report showing...      - The amount owed by one business to another       - Details of transactions between the two businesses

Payment Confirmation:* Proof of internet transaction

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