Assets, liabilities, budgets and cash journals
Assets and liabilities, budgets, source documents and the cash receipts and cash payments journals. Read one part at a time and tap “I know this”. Then test yourself in the quiz.
Know it already? Jump straight to the quiz
Assets and liabilities
| Assets (owns) | Liabilities (owes) |
|---|---|
| A bakkie, a building | A bank loan |
| Trading stock | Money owed to creditors |
| Money debtors owe |
A balance sheet lists what a business owns and owes. The owner’s share is owner’s equity. Count stock regularly to find losses and theft.
Source documents
| Document | What it proves |
|---|---|
| Receipt | That someone paid |
| Invoice | A request for payment |
| Deposit slip | That money was paid into the bank |
| Bank statement | Money in and out of the account; check for errors and fraud |
The cash journals
| Transaction | Journal |
|---|---|
| Goods are sold for cash | CRJ (money in) |
| Rent of R2 000 paid by EFT | CPJ (money out) |
| Paid the telephone account by EFT | CPJ (money out) |
Accurate records help to calculate profit and make decisions. If expenses exceed income month after month, the business falls into debt. Computer records add up faster than paper.
Remember this and test yourself
- Asset: something of value you own (a bakkie). Liability: something you owe (a bank loan).
- A budget is a plan of income and expenses.
- A source document proves a transaction: receipt, invoice, deposit slip; they are numbered.
- CRJ (cash receipts journal): money in. CPJ (cash payments journal): money out.
- Debtors owe the business money; the business owes creditors money.
Write these points in your book. Read them again the night before the test.
CRJ = Cash Received (money in). CPJ = Cash Paid (money out).
Important words
First say what the word means, then turn the card over.
Match column A to column B
Tap a word in column A, then its meaning in column B. You can also start in column B.
True or false?
Read the question and the answer. Is the answer right? Tap True or False.
Now the real quiz!
The quiz has many more questions on this topic. Every question shows straight away whether you are right and explains why.
Take the quiz: Assets, liabilities, budgets and cash journals- Read one part together and ask your child to tell it back in their own words.
- The ticks (“I know this”) are saved on this device only. We never ask for names or emails.
Follows CAPS for Grade 7 Economic and Management Sciences (EMS). Always check your teacher’s notes and textbook too.