Accounting - Chapter 7 What are source documents Give two examples Source documents are original transactions and are often used as evidence that a

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Chapter 6: Where is the amount of merchandise inventory disclosed in the financial statements? It is disclosed in the income statement and balance sheet. What is the meaning of market as it is used in determining the lower of cost or market for inventory? The meaning of market as it is used in determining the LCM is the current replacement cost of purchasing the same inventory items in the usual manner. What guidance does the principle of conservatism offer? The principle of conservatism provides that accounting for a business should be fair and reasonable. They should do so in a way that neither overstates nor understates the affairs of the business or the results of operation.
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Unformatted text preview: Chapter 7: What are source documents? Give two examples. Source documents are original transactions, and are often used as evidence that a business transaction has occurred. Some examples are: Customers invoices, time cards, credit cards receipts and deposit slips. When special journals are used, they are usually used to record each of four different types of transactions. What are these four types of transactions? Why should sales to and receipts of cash from credit customers be recorded and posted immediately? CHECK THIS WEBSITE OUT....
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This note was uploaded on 11/15/2010 for the course AC 201 taught by Professor Leland during the Spring '10 term at Park.

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