Trading Business Journals, Ledger & Trial Balance is one of 8 topics in the Grade 9 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 main difference between a service business and a trading business?
A trading business earns income mainly by buying and reselling stock, while a service business earns income by doing something for a customer
A trading business never earns a profit
A service business only exists in Grade 8, not Grade 9
A trading business cannot have cash transactions
Answer: A trading business earns income mainly by buying and reselling stock, while a service business earns income by doing something for a customer — A trading business, like a shop, earns income mainly by buying stock and reselling it, while a service business, like a hairdresser, earns income by doing a service for customers.
Easy
2. Which journal is used to record every transaction where a business RECEIVES cash?
The Cash Receipts Journal (CRJ)
The Cash Payments Journal (CPJ)
The general ledger
The trial balance
Answer: The Cash Receipts Journal (CRJ) — The Cash Receipts Journal (CRJ) is used to record every transaction where a business receives cash, such as cash sales.
Medium
3. Name the CRJ column that records what stock sold to a customer actually cost the business, used later to calculate gross profit.
Answer: Cost of Sales — The Cost of Sales column records what the stock sold actually cost the business, which is needed later to calculate gross profit.
