What are source documents in the context of business accounting?

Source documents in the context of business accounting refer to the original records that provide evidence of a business's daily transactions. These documents serve as the primary data source for recording financial activities in the accounting systems.

Cash receipts and time cards are solid examples of source documents. Cash receipts provide proof of income, indicating that money has been received, and are vital for tracking revenue, while time cards are essential for documenting hours worked by employees, which directly affect payroll calculations and labor cost analysis. Together, these documents support the accuracy and completeness of the accounting records.

The other choices, while relevant to business operations, do not meet the strict definition of source documents. Invoices and tax returns are more related to transactional and reporting phases rather than being primary records. Payroll records and contracts are important for financial management but are often derived from the original source documents, not serving as evidence of transactions themselves. Lastly, customer feedback and surveys pertain to customer relations and marketing, lacking any direct link to financial transactions recorded in accounting systems.