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Accounting Allah shmoop the need for source documents A receipts

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All right Well what our source documents and why did

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they matter Well this lesson is all about the bones

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of an income statement and it doesn't get any You

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know bonier than tracking your company's receipts I eat confirmations

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that had given transaction actually happened and that's what a

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source document is Just a fancy word for a receipt

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Well when you reconcile in expense you don't just make

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up or guess or trust what the numbers might be

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or to whom you are reimbursing that cost Rather you

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cite a receipt in whatever form the company requires and

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journal the entry And sadly there is evil out there

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in the world And you super accountant must slip on

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your Leotardo in Red Cape every now and then and

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you know walk around the living room Some people just

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like doing that Then when you're done you do some

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accounting Well why do you need receipts Well you can

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imagine some unscrupulous employees just tells the bookkeeper at her

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company that she spent two grand on a trip to

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Peoria hoping to sell plastic Wahoos amorphous when in fact

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she went to Peoria to compete in the world Rach

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it skateboarding championships And that's not what the company does

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for a living Should her company be paying for her

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personal competitions No shareholders pay for things that make more

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money for shareholders and that's it So the bookkeeper needs

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some kind of source or backup paperwork That makes it

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clear that the puree a visitor was being honest when

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she submitted her two thousand dollar bill to the company

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Well these can be things like check or credit card

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receipts from her hotel in Peoria records of uber taking

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her to and from the people to whom she was

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trying to sell woes Amorphous invoices from sales of said

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one who's amore airline ticket receipts or a record of

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the app she bought and downloaded to track her every 00:01:50.56 --> [endTime] movement Yeah isn't technology wonderful

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