And also quite possibly inside /etc/apt/sources.list.d/
Upfront, the /etc/apt/source.list is a configuration file for Linux's Advance Packaging Tool, that holds URLs and other information for remote repositories from where software packages and applications are installed.
Same goes with files inside /etc/apt/sources.list.d/.
Basically, when an installation command is executed, eg. apt-get install <package_name> then the Package Management System looks inside /etc/apt/sources.list and /etc/apt/sources.list.d/ for the remote repository link, and searches for the desired application to be downloaded.
" One of the reasons why there are two places for list instead of one, is in order to make sure data are not overwritten/lost during a system update. /etc/apt/source.list may be overwritten in update as this tend to happen with /etc/profile. That is also why custom configurations that generally goes inside /etc/profile file are preferably placed inside /etc/profile.d/ directory. "
A single link inside /etc/apt/sources.list file looks like this:
deb-src http://security.ubuntu.com/ubuntu eoan-security universe
On interpreting individual word:
deb-src
- debian source files that needs to be compiled. It can also be deb, which means precompiled debian source files.
 
http://securty.ubuntu.com/ubuntu
- The URL where the repository is stored
 
eoan-security
- The version name of the repository
 
universe
- How the software is available to end users
 - It can be one of 
Main,Restricted,UniverseorMultiverse
 
Overall:
deb (or deb-src) address distribution_name package_type_list
    
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