Question

Which of the following source document(s) is (are) common to both the sales and the purchasing processes?

1) Debit/credit memorandum
2) Financial statement information
3) Discrepancy reports and bad debt report
4) None of the above

Answer 1

The debit/credit memorandum is the source document common to both the sales and purchasing processes, used to rectify discrepancies in transactions.

Step-by-step explanation:

The source document(s) common to both the sales and the purchasing processes is the debit/credit memorandum. This document is used in both processes to rectify any discrepancies that may occur, such as incorrect billing or returns. Financial statement information is typically a summary report rather than a source document used in transactions, while discrepancy reports and bad debt reports tend to be more specific to account management and are not common transactional documents.