Cash receipts, customer invoices, and time cards are all examples of what?

Cash receipts, customer invoices, and time cards are classified as source documents because they provide the initial evidence of a financial transaction. Source documents are foundational elements for the accounting process, capturing transactions in their original form and ensuring that all financial activities are properly documented and verifiable. They serve as the primary proof used to record the transactions in accounting systems, making them essential for maintaining accuracy in financial records.

In this context, cash receipts document money received, customer invoices outline sales made to clients and the amounts owed, while time cards track labor hours for payroll purposes. Each of these documents plays a critical role in the overall accounting framework by providing clear and tangible records that can be referred to during audits or financial reviews.

While financial records encompass all types of accounting records stored by a business, including ledgers and financial statements, source documents specifically refer to those initial records that provide details about individual transactions. Transaction reports typically summarize or analyze data from multiple transactions, and accounting statements are formal reports that encapsulate the financial position and performance of a business over a specified time period.