WorksheetsGrade 8 EMS (TVM)
Total questions: 30
Worksheet time: 22mins
What is the purpose of the accounting equation?
To calculate wages
To ensure the books balance
To record capital only
To calculate tax
The accounting equation is:
Assets + Liabilities = Owner's Equity
Assets = Liabilities + Owner’s Equity
Assets = Owner’s Equity – Liabilities
Liabilities = Assets + Owner’s Equity
A receipt is issued when:
A business pays money
Goods are returned
Money is received
Credit is granted
The source document for a cash sale is a:
Invoice
Cheque counterfoil
Receipt
Bank statement
Which of the following is an asset?
Loan from bank
Equipment
Capital
Wages
Capital increases when:
The owner withdraws money
The business pays rent
The owner invests more
Liabilities increase
A debit entry means:
A decrease in assets
An increase in liabilities
A decrease in capital
An increase in assets
Which one is NOT a source document?
Cash register roll
Invoice
Bank deposit slip
Asset
What is the main function of accounting?
Marketing products
Managing people
Recording financial information
Packing goods
An example of a liability is:
Rent received
Drawings
Loan from ABC Bank
Capital
Which transaction increases both assets and owner’s equity?
Buying furniture
Owner invests money
Paying wages
Paying rent
A cash payment journal records:
Money received
Credit sales
Money paid out
Bank charges
A transaction is recorded in the:
Financial statements
Accounting system
Income tax return
Trial balance
A credit transaction occurs when:
Payment is made immediately
Goods are bought and paid later
Goods are returned
Cash is received
What does the owner’s equity represent?
What the business owns
What the business owes
The owner’s claim on the business
The profit only
A cheque counterfoil is a document for:
Cash received
Cash paid
Credit purchase
Bank deposit
What will happen to the accounting equation if the business buys stock for cash?
Increase in capital
Increase in assets
No effect
One asset increases, another decreases
A trial balance is used to:
Show profit
Balance income and expenses
Check accuracy of books
Record capital
A bank deposit slip is issued when:
Money is withdrawn
A loan is paid
Money is deposited into the bank
A cheque is issued
The first step in the accounting cycle is:
Preparing a trial balance
Recording transactions
Posting to ledger
Analyzing source documents
The source document for goods bought on credit is a(n) (a) .
A (a) is used to show proof of payment.
The accounting cycle starts with (a) documents.
A loan is a liability (a)
Cash receipts are recorded in the cash payment journal (a)
Capital increases when the owner contributes money. (a)
The accounting equation must always balance. (a)
Drawings increase owner’s equity (a)
Match the following
Capital
Owner's investment
Asset
Something owned by the business
Liability
Money owed by the business
Income
Money earned from business operations
Match the following
Receipt
Given when money is received
Invoice
Given when goods are bought on credit
Bank Deposit slip
Proof of money deposited into a bank
Cheque counterfoil
Used for payments by cheque
