Financial Literacy Quiz

What does CRJ stand for?

• Cash Record Journal

• Credit Receipts Journal

• Cash Revenue Journal

• Cash Receipts Journal

What is the primary purpose of the Cash Receipts Journal (CRJ)?

• To monitor cash outflows

• To manage liabilities

• To record inventory purchases

• To track cash inflows

What type of transactions are recorded in the Cash Payments Journal (CPJ)?

• Cash received from customers

• Cash payments made by a business

• Cash investments

• Cash sales

Which of the following is an example of a cash payment recorded in the CPJ?

• Receiving cash from a debtor

• Receiving a loan

• Paying rent

• Selling goods for cash

How do cash receipts affect the accounting equation?

• They decrease assets

• They increase liabilities

• They increase assets

• They have no effect

What happens to assets when cash payments are made?

• Assets remain unchanged

• Assets decrease

• Assets are transferred

• Assets increase

Which of the following is a common cash transaction in a trading business?

• Loan repayments

• Credit sales

• Cash sales

• Asset depreciation

What is the first step in recording a transaction in the CRJ?

• Enter the transaction date

• Describe the source of cash

• Allocate amounts to columns

• Enter the total cash received

What is recorded in the bank column of the CRJ?

• Total cash paid

• Total cash received

• Total liabilities

• Total owner's equity

What does the accounting equation state?

• Assets = Liabilities + Owner’s Equity

• Assets + Liabilities = Owner’s Equity

• Liabilities = Assets - Owner’s Equity

• Owner’s Equity = Assets + Liabilities