Which of the following statements regarding accounting records is TRUE? A) All transactions are irrelevant if they occur infrequently. B) Accounting records only serve internal man... Which of the following statements regarding accounting records is TRUE? A) All transactions are irrelevant if they occur infrequently. B) Accounting records only serve internal management needs. C) Every transaction must have a supporting document. D) Accounting records can be disregarded if transactions are minimal.
Understand the Problem
The question is asking which statement about accounting records is true among the options provided. This involves understanding basic accounting principles and the importance of supporting documentation for transactions.
Answer
Every transaction must have a supporting document.
The final answer is C) Every transaction must have a supporting document.
Answer for screen readers
The final answer is C) Every transaction must have a supporting document.
More Information
In accounting, every transaction must be supported by a document or evidence to verify it occurred. This ensures accuracy and reliability in financial reporting.
Tips
A common mistake is assuming transactions need no documentation if they are minor; however, all transactions should have supporting documents.
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