Date: SEPTEMBER 2025
Time: 1 HOUR
Marks: 60
Grade: 8
Subject: EMS – FINANCIAL LITERACY
Paper: 1
Name and Surname:
INSTRUCTIONS
• Answer all questions in the test.
• Write neatly and legibly.
• Show all calculations where applicable.
• Only write the correct letter (A–D) next to each number in multiple-choice
questions.
• Use a calculator if necessary.
• No correction fluid is allowed.
• All work must be done in blue or black ink.
• Marks for each question are indicated in brackets.
TOPICS COVERED IN THIS TEST
• Basic Accounting Concept
• The Accounting Equation
• Source Documents and Journals
• Classification of Accounts
• Transaction Analysis
• Completion of CRJ and CPJ
• Interpretation of Business Scenarios
• Application of the Accounting Equation
Pg 1/8 www.summariessa.co.za Author: DAN SMI
Grade: 8 Subject: EMS – P1 Date: SEPT 2025
, QUESTION 1
1.1 Various options are provided as possible answers. Choose the correct answer
and write only the letter next to the question number.
1.1.1 What is the main purpose of a budget?
A. To earn interest
B. To plan income and expenses
C. To keep money in the bank
D. To avoid working
1.1.2 Which of the following is an example of an asset?
A. Bank loan
B. Cash
C. Rent expense
D. Owner’s equity
1.1.3 Which account is classified as an expense?
A. Sales
B. Capital
C. Water and electricity
D. Equipment
1.1.4 Which of the following is a liability?
A. Owner’s equity
B. Drawings
C. Loan from bank
D. Income
Pg 2/8 www.summariessa.co.za Author: DAN SMI
Grade: 8 Subject: EMS – P1 Date: SEPT 2025
, 1.1.5 What is the accounting equation?
A. Assets = Income – Expenses
B. Assets = Liabilities + Owner’s Equity
C. Assets = Capital – Liabilities
D. Assets = Expenses + Income
1.1.6 What is a source document?
A. A textbook
B. A receipt or invoice
C. A bank
D. A balance sheet
1.1.7 Which of the following is not a current asset?
A. Debtors
B. Bank
C. Equipment
D. Cash float
1.1.8 Which account increases when the business earns money?
A. Expenses
B. Income
C. Liabilities
D. Drawings
1.1.9 What does the term “drawings” mean?
A. Money paid to suppliers
B. Money earned
C. Money taken by owner for personal use
D. Money borrowed from bank
Pg 3/8 www.summariessa.co.za Author: DAN SMI
Grade: 8 Subject: EMS – P1 Date: SEPT 2025
Time: 1 HOUR
Marks: 60
Grade: 8
Subject: EMS – FINANCIAL LITERACY
Paper: 1
Name and Surname:
INSTRUCTIONS
• Answer all questions in the test.
• Write neatly and legibly.
• Show all calculations where applicable.
• Only write the correct letter (A–D) next to each number in multiple-choice
questions.
• Use a calculator if necessary.
• No correction fluid is allowed.
• All work must be done in blue or black ink.
• Marks for each question are indicated in brackets.
TOPICS COVERED IN THIS TEST
• Basic Accounting Concept
• The Accounting Equation
• Source Documents and Journals
• Classification of Accounts
• Transaction Analysis
• Completion of CRJ and CPJ
• Interpretation of Business Scenarios
• Application of the Accounting Equation
Pg 1/8 www.summariessa.co.za Author: DAN SMI
Grade: 8 Subject: EMS – P1 Date: SEPT 2025
, QUESTION 1
1.1 Various options are provided as possible answers. Choose the correct answer
and write only the letter next to the question number.
1.1.1 What is the main purpose of a budget?
A. To earn interest
B. To plan income and expenses
C. To keep money in the bank
D. To avoid working
1.1.2 Which of the following is an example of an asset?
A. Bank loan
B. Cash
C. Rent expense
D. Owner’s equity
1.1.3 Which account is classified as an expense?
A. Sales
B. Capital
C. Water and electricity
D. Equipment
1.1.4 Which of the following is a liability?
A. Owner’s equity
B. Drawings
C. Loan from bank
D. Income
Pg 2/8 www.summariessa.co.za Author: DAN SMI
Grade: 8 Subject: EMS – P1 Date: SEPT 2025
, 1.1.5 What is the accounting equation?
A. Assets = Income – Expenses
B. Assets = Liabilities + Owner’s Equity
C. Assets = Capital – Liabilities
D. Assets = Expenses + Income
1.1.6 What is a source document?
A. A textbook
B. A receipt or invoice
C. A bank
D. A balance sheet
1.1.7 Which of the following is not a current asset?
A. Debtors
B. Bank
C. Equipment
D. Cash float
1.1.8 Which account increases when the business earns money?
A. Expenses
B. Income
C. Liabilities
D. Drawings
1.1.9 What does the term “drawings” mean?
A. Money paid to suppliers
B. Money earned
C. Money taken by owner for personal use
D. Money borrowed from bank
Pg 3/8 www.summariessa.co.za Author: DAN SMI
Grade: 8 Subject: EMS – P1 Date: SEPT 2025
