The Accounting Cycle & Cash Receipts Journal is one of 9 topics in the Grade 8 Economic and Management Sciences CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. What is the accounting cycle?
The step-by-step journey a transaction takes from happening to appearing in a financial report
A yearly meeting held by a business's owner
A type of bank account for businesses
A government tax collection process
Answer: The step-by-step journey a transaction takes from happening to appearing in a financial report — The accounting cycle is the step-by-step journey a single transaction takes, from the moment it happens, through to appearing in a business's final financial reports.
Medium
2. Arrange these four steps of the accounting cycle in the correct order.
Transaction occurs
Recorded in a subsidiary journal
Posted to the general ledger
Trial balance is drawn up
Answer: ["Transaction occurs","Recorded in a subsidiary journal","Posted to the general ledger","Trial balance is drawn up"] — The accounting cycle flows: a transaction occurs, it is recorded in a subsidiary journal, entries are posted to the general ledger, and then a trial balance is drawn up to check the books.
Medium
3. What is the general ledger?
A record that organises all of a business's transactions by account, rather than by date
The very first document created for any transaction
A document only used once a year
A type of tax return
Answer: A record that organises all of a business's transactions by account, rather than by date — The general ledger organises all of a business's transactions by account, such as a separate record just for cash or for rent expense, rather than by date.
