Financial Literacy Basics 3 - Grade 9 EMS

What must be distinguished before entering transactions into the journals?

• Between cash receipts and cash payments

• Between assets and liabilities

• Between income and expenses

• Between fixed and current assets

What does the Cash Payments Journal tell?

• How much cash is paid out of the bank

• How much cash is received

• The total assets of the business

• The owner's equity

What is recorded in the Cash Receipts Journal (CRJ)?

• All cash received by a service business

• All cash paid out of the bank

• Only cash transactions affecting Owner's Equity

• Only cash transactions affecting assets

What must be done at the end of the month for the CRJ?

• It must be closed off

• It must be audited

• It must be filed

• It must be printed

What are examples of cash payments?

• Paying wages and salaries

• Receiving cash from customers

• Selling assets

• Investing in stocks

What is needed to complete a CPJ?

• Source documents such as cheque counterfoils

• Only bank statements

• Only cash receipts

• No documents are needed