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Grade 8 EMS Test (TVM)

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

What is the first step of the accounting cycle?

a)

Prepare a trial balance

b)

Post to ledger

c)

Identify and record source documents

d)

Do bank reconciliation

2.

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

a)

Recording transactions

b)

Preparing a CV

c)

Balancing the books

d)

Creating financial statements

3.

The accounting cycle is repeated:

a)

Once a year

b)

Every two years

c)

Continuously during a financial period

d)

Only in December

4.

What are the three main steps in the accounting process?

a)

Planning, organizing, filing

b)

Identifying, recording, summarising

c)

Guessing, balancing, erasing

d)

Collecting, marketing, selling

5.

In which document do we summarize all financial information?

a)

Source document

b)

Ledger

c)

Trial balance

d)

Invoice

6.

A duplicate cash invoice is used for:

a)

Buying goods on credit

b)

Paying wages

c)

Cash sales

d)

Borrowing money

7.

Which document is used for recording cash received?

a)

Credit note

b)

Deposit slip

c)

Receipt

d)

Cheque counterfoil

8.

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

a)

Petty cash book

b)

Cash receipts journal

c)

Cash payments journal

d)

Debtors journal

9.

A till slip is used when:

a)

Goods are returned

b)

Goods are sold for cash

c)

Salaries are paid

d)

Goods are sold on credit

10.

What is a transaction?

a)

A business decision

b)

An exchange of goods or services for money

c)

A receipt

d)

A monthly report

11.

What does the double entry system mean?

a)

Record each transaction once

b)

Record each transaction twice in the same account

c)

Every transaction affects two accounts

d)

Every account has two entries

12.

Which of the following accounts increases with a debit?

a)

Income

b)

Expenses

c)

Capital

d)

Liabilities

13.

If a business receives R2 000 cash, which is correct?

a)

Cash increases, so debit cash

b)

Cash decreases, so credit cash

c)

Income increases, debit income

d)

Capital increases, credit income

14.

What does the accounting equation represent?

a)

Assets = Expenses + Liabilities

b)

Assets = Owner’s equity - Liabilities

c)

Assets = Owner’s equity + Liabilities

d)

Liabilities = Capital + Drawings

15.

When you buy stationery for cash, what is the effect on the accounting equation?

a)

Assets increase, expenses decrease

b)

Assets increase, income increases

c)

Assets decrease, expenses increase

d)

Liabilities increase, assets decrease

16.

The CRJ records:

a)

All payments

b)

All sales

c)

All income received

d)

All drawings

17.

What is a subsidiary journal?

a)

Journal for expenses

b)

Main financial report

c)

Book for detailed transaction recording

d)

Personal account ledger

18.

Which of these would be recorded in the CRJ?

a)

Paying for stock

b)

Receiving interest

c)

Buying on credit

d)

Issuing an invoice

19.

In which source document would bank deposits be recorded?

a)

Invoice

b)

Petty cash voucher

c)

Deposit slip

d)

Order form

20.

The total of the CRJ is posted to the:

a)

Debtors control account

b)

Income statement

c)

General ledger

d)

Source document

21.

What is the purpose of a trial balance?

a)

To prepare a CV

b)

To correct all mistakes

c)

To check if debits equal credits

d)

To create sales reports

22.

If the trial balance does not balance, it means:

a)

Business is failing

b)

Financial statements are correct

c)

There is an error in the records

d)

Profit was made

23.

In which order are accounts listed in a trial balance?

a)

Alphabetical

b)

Random

c)

Debit and then credit

d)

Based on their balances

24.

Which of the following is a ledger account?

a)

Invoice

b)

Sales

c)

Credit note

d)

Deposit slip

25.

When sales are recorded in the ledger, they usually:

a)

Decrease liabilities

b)

Increase capital

c)

Decrease assets

d)

Increase expenses

26.

Owner deposits R10 000 into the business.

a)

Assets decrease

b)

Capital increases

c)

Income increases

d)

Expenses increase

27.

Bought equipment on credit. What happens?

a)

Assets increase, liabilities increase

b)

Assets decrease, liabilities decrease

c)

Capital increases

d)

Income increases

28.

Paid rent in cash.

a)

Assets increase

b)

Expenses decrease

c)

Assets decrease, expenses increase

d)

Liabilities increase

29.

Received interest from the bank.

a)

Assets decrease

b)

Income increases, assets increase

c)

Capital decreases

d)

Liabilities increase

30.

Paid a creditor.

a)

Assets and liabilities decrease

b)

Assets and liabilities increase

c)

Capital decreases

d)

Expenses increase

31.

Which source document is issued when cash is received?

a)

Receipt

b)

Invoice

c)

Debit note

d)

Order form

32.

Which account is debited when the business pays wages?

a)

Bank

b)

Wages

c)

Capital

d)

Sales

33.

What is recorded in the bank column of the CRJ?

a)

Amount paid

b)

Amount received

c)

Capital amount

d)

Stock value

34.

The owner withdrew R500 for personal use. This is called:

a)

Drawings

b)

Income

c)

Capital

d)

Profit

35.

Which account type is 'rent income'?

a)

Expense

b)

Liability

c)

Asset

d)

Income

36.

A creditor is someone the business:

a)

Owes money to

b)

Buys from and pays later

c)

Sells to

d)

Lends money to

37.

Assets are things:

a)

The business uses to operate

b)

That increase expenses

c)

That are owed by the business

d)

That reduce capital

38.

Which of the following is a cash transaction?

a)

Buying stock and paying later

b)

Selling goods on credit

c)

Receiving payment immediately

d)

Buying on account

39.

The capital account shows:

a)

Profit

b)

How much the owner invested

c)

Expenses

d)

Loan balance

40.

Which account is affected when interest expense is paid?

a)

Income

b)

Capital

c)

Expense

d)

Asset