Grade 8 EMS Term 3 Lesson 1

State whether the following statement is true or false?  A transaction is an action that takes place in a business.

• True

• False

State whether the following statement is true or false? When the business purchased an asset, the transaction will have an influence on the owner's equity.  

• True

• False

Expenses ... the owner's equity. .*

• Increases

• Decreases

• All of the above

• All of the above

State whether the following statement is true or false? Drawings is an expense.

• True

• False

The following are examples of expenses.  *

• Stationery

• Wages

• Rent-expense

• All of the above

State whether the following statement is true or false?  A service business is where a service is offered in exchange for a payment (e.g. a hair salon).

• True

• False

State whether the following statement is true or false?  A payment is money deducted from the current bank account of a business.

• True

• False

Show the effect on the accounting equation of the following transaction. Made an EFT to the Municipality for a trading license, R950.

• Assets increases and decreases with R950

• Assets and owner's equity increases with R950

• Assets and owner's equity decreases with R950

• None of the above

The following documents are used in the CPJ*

• EFT reference number

• Bank statements

• None of the above

• All of the above

What is the name for oil and spare parts of a vehicle repair service?  

• Material costs

• Capital

• Wages

• None of the above