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Ems Revision Work Textbook

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10 views4 pages

Ems Revision Work Textbook

Uploaded by

kershannaidu21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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EMS REVISION WORK

Accounting concepts
1. Copy the table below and classify whether the following accounts are
assets, liabilities or expenses:

stationery, bank, stock, equipment, rent

paid, loan from Absa Bank, advertising, telephone, vehicles, water and

electricity, land and buildings, interest on loan.

Assets Liabilities Expenses

2. Explain the meaning of the following:


a) Transaction
b) Savings
c) Loss. (6)
3. Choose the most suitable match. Write down only the number and the letter.

Accounting term Definition

1. Assets A When money is put aside for the future

2. Capital B The total debts that the business has to pay back

3. Fixed deposit C Planning how much money you will have in the future

4. Bank account D The money or assets invested in the business by the owner

5. Budgets E Money that is earned by the business for providing a service

6. Savings F A savings account where you can withdraw money whenever you need to

7. Liability G The possessions that are valuable to the business

8. Call account H Money earned and paid to the employees of the business

9. Loan: FNB Bank I The cost of borrowing money

10. Current income J An investment made in order to earn a fixed interest rate

11. Salaries and wages K An account opened by the business to deposit and withdraw money

12. Interest on loan L Money that the business has borrowed from a financial institution
Income and expenses
1. From the list below, identify which of the following would be a business
income, personal income or both:
a) Salaries and wages
b) Rent from a second home
c) Interest on a fixed deposit
d) Sales
e) Current income
f) Rent office

2. From the list below, identify which of the following would be a business
expense, personal expense or both:
a) Salaries and wages
b) Advertising
c) Interest on loan
d) Water and electricity
e) Petrol
f) Service material

3. Define the following words:


a) Commission income
c) Investments
b) Savings
d) Interest rate
4. Below is the Statement of Net Worth for Jordi Murray for September.
Study the information and answer the questions that follow.
Jordi Murray
Statement of Net worth for September
POSSESSIONS R
House 800 000
Cars 120 000
Furniture 10 000
Computer 5 500
Money 1 500
Fixed deposit 52 200
Total Possessions
Debts R
Loan at the bank 550 000
Credit card 9 500
Accounts 12 300
Total Debts
Net Worth
a) Calculate the missing figures in the table. (3)
b) What is Jordi’s net worth for September? (3)
c) Why do think that the loan at the bank is so high? (2)
d) Discuss two ways in which Jordi can improve her net worth. (4)
5. What does the term ‘savings’ mean? (2)
6. What are the advantages of saving some of your income each month? (2)
7. Explain what interest is. (2)
8. Explain why a fixed deposit account is a better form of investment than
a savings account. (4)
9. Explain how savings and investments make money available to start new
businesses. (3)
Budgets
1. Complete the following budget and answer the questions that follow.
JANUARY

When Thabiso started Grade 7 his mother decided it was important for him to learn
how to manage money. She decided to give him an allowance of R200 a month. He
would also be given R50 a month if he helped to clean up around the house and wash
the dishes. His mother also agreed to pay him or his sister R60 a month (R15 a week) if
they mowed the lawn once a week.
Thabiso decided that he wanted to spend R30 a month on snacks and R20 a month on
magazines. He also wanted to buy a T-shirt that cost R125 as soon as he got his January
allowance. He also wanted to buy stationery for school for R80.

JANUARY
Income/Receipts of Cash 310

Allowance 200
Money for cleaning the house 50

Money for working in the garden 45

Expenses/Payments of cash 305

Snack foods 30
Magazines 20
Clothes 125
Stationery 80
Savings 50
Surplus for the month 5
Money at the beginning of the
month
Money at the end of the month 5

1. What is a budget and why is it important to have one? (5)


2. What type of information is shown in a budget? (3)
3. What kind of budget has Thabiso drawn up? (2)
4. Why did Thabiso have no money at the beginning of the month? (5)
5. How does Thabiso earn income to pay for his expenses? (3)
6. How many times did Thabiso mow the lawn in January? (2)
7. How much could Thabiso earn if he mowed the lawn every week? (2)

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