Transaction data gathered at the point of sale is known as:

• A. General ledger
• B. Source documents
• C. Trial balance
• D. Adjusting entries

Answer: (B)

Verified step by step guidance

1. Understand the concept of transaction data gathered at the point of sale. This refers to the initial record of a financial transaction, typically created when a sale occurs.
2. Learn about source documents. These are original records that provide evidence of a transaction, such as receipts, invoices, or sales slips. They are crucial for recording transactions in the accounting system.
3. Differentiate source documents from other accounting terms like general ledger, trial balance, and adjusting entries. The general ledger is a collection of accounts summarizing all transactions, the trial balance is a summary of balances in the ledger, and adjusting entries are made to update accounts before preparing financial statements.
4. Recognize that source documents are the starting point for recording transactions in the accounting process. They serve as the basis for journal entries, which are later posted to the general ledger.
5. Conclude that transaction data gathered at the point of sale is classified as source documents because they provide the initial evidence of the transaction and are essential for accurate financial reporting.