In accounting, a good example of a source document is a/an what?

A source document is a crucial part of the accounting process as it provides the evidence needed to substantiate the transactions recorded in the accounting system. An invoice serves as a prime example of a source document because it contains details about a sale, including the amount charged, the goods or services provided, and the transaction date. This document is generated at the time of a sale and acts as proof of the transaction, which can later be referenced in financial records.

Other options, while important in accounting, do not qualify as source documents. A ledger is an accounting record where transactions are summarized, but it does not serve as a primary document from which transactions are derived. A balance sheet is a financial statement that reports a company's financial position at a specific point in time, and it is developed based on the transactions recorded in the accounting system. A report provides summarized data but is not a documentation of individual transactions. Thus, the invoice stands out as it directly records a transaction and is foundational to the accounting cycle.