Grade 8 EMS Test (TVM)

What is the first step of the accounting cycle?

• Prepare a trial balance

• Post to ledger

• Identify and record source documents

• Do bank reconciliation

Which of the following is NOT part of the accounting cycle?

• Recording transactions

• Preparing a CV

• Balancing the books

• Creating financial statements

The accounting cycle is repeated:

• Once a year

• Every two years

• Continuously during a financial period

• Only in December

What are the three main steps in the accounting process?

• Planning, organizing, filing

• Identifying, recording, summarising

• Guessing, balancing, erasing

• Collecting, marketing, selling

In which document do we summarize all financial information?

• Source document

• Ledger

• Trial balance

• Invoice

A duplicate cash invoice is used for:

• Buying goods on credit

• Paying wages

• Cash sales

• Borrowing money

Which document is used for recording cash received?

• Credit note

• Deposit slip

• Receipt

• Cheque counterfoil

When a business receives money, the transaction is recorded in the:

• Petty cash book

• Cash receipts journal

• Cash payments journal

• Debtors journal

A till slip is used when:

• Goods are returned

• Goods are sold for cash

• Salaries are paid

• Goods are sold on credit

What is a transaction?

• A business decision

• An exchange of goods or services for money

• A receipt

• A monthly report