Grade 7 · CAPS

Grade 7 Financial Concepts and Terminology

Economic and Management Sciences practice questions with answers

Grade 7 Financial Concepts and Terminology is part of the CAPS Economic and Management Sciences curriculum, covering key financial terms and structures. Learners will explore how a Community Savings Scheme (Stokvel) functions, identify current and non-current assets, and understand the different types of capital. They will also learn to define financial terms such as salary and depreciation. The practice questions below are drawn from ReClass's own question bank.

Worked example

3.3 If “Consumer goods” is one type of Goods – name the two other types of goods, and give a brief explanation of each.

Answer & explanation

Capital goods: used to produce other goods, e.g. machinery, delivery vehicles. Semi-finished goods: goods used to manufacture other goods.

You'll also practise

  • 2.1 VAT
  • 2.2 Formal business
  • 2.3 Net worth
  • 2.4 Salary
  • 2.5 Community need
  • 3.4 Provide a definition for the following terms: 3.4.1 Trading Business.
  • 3.4.2 Services Business.
  • 3.6 Give a brief explanation of Bartering.
  • 3.7 List four disadvantages of bartering.
  • 5.2 Name two groups of people or institutions that will be interested in the Financial Statements of a business.
  • 2.1 State whether the following statements are True or False. Assets are the items that have monetary value and are owned by the business.
  • 2.2 State whether the following statements are True or False. Expenses are items which have no lasting value.
  • 2.3 State whether the following statements are True or False. Articles that sell slowly, have a low profit margin.
  • 2.4 State whether the following statements are True or False. Personal expenses can be referred to as living expenses.
  • 3.2 Provide a term for the following definitions. The money a business makes after deducting all the expenses from the income.
  • 3.3 Provide a term for the following definitions. A decrease in financial value.
  • 3.4 Provide a term for the following definitions. The money a business earns.
  • 3.5 Provide a term for the following definitions. A financial action or event that takes place in a business.
  • 6.1 List the five main types of capital.
  • 6.3 Explain the difference between fixed and variable income.
  • 7.1 Determine the answers for the missing calculations marked A to D.
  • 7.2 If the sales for October 2013 were R250,000 and the sales for September 2014 were R350,000, do you think R400,250 is a realistic amount to achieve for October 2014? Provide a reason for your answer.
  • 7.3 Name any two expenses that you think would have also increased, if sales increased by R50,000. Explain your answer.
  • 8.11 In paragraph form, give a brief explanation on the History of Banks.
  • 4. Match Column A to Column B. Write the letter from Column B in the spaces below. (20) COLUMN A 4.1 Assets 4.2 Liabilities 4.3 Capital 4.4 Fixed expenses 4.5 Variable expenses 4.6 Profit 4.7 Loss 4.8 Break-even point 4.9 Budget 4.10 Savings COLUMN B a) Decrease in financial value b) Written plan on how to spend future income c) Must be paid monthly, without fail d) Income = Expenses e) Items that are owned by a business f) Putting money aside for future use g) Money owed to other people h) Costs related to the amount of products a business provides i) All the money, goods and property owned by a business j) Income - Expenses
  • 5.1 Name the five types of Capital. (5)
  • 5.2 What are Current and Non-Current Assets? Give an example of each. (4)
  • 5.3 What is “The Profit Motive”? (2)
  • 5.4 Are the following statements True or False? (8) 5.4.1 SARS need to see the Financial Statements to make sure that all VAT is paid. 5.4.2 Partners need to see Financial Statements to determine if their investment is profitable. 5.4.3 Employees and Trade Unions need to see Financial Statements to make sure the business can pay its debts. 5.4.4 Managers need to see Financial Statements so that they are able to solve problems that may arise.
  • 5.5 Name three different ways personal income can be earned? (3)
  • 1.1 Complete a Statement of Net Worth. The TNS bank has asked you to draw up a Statement of Net Worth to assess if you qualify for a personal loan.
  • 1.2 Do you think the TNS Bank would give you a personal loan? Explain your answer.
  • 2.1 Use the information supplied below and draw up a budget for Zac’s Art Gallery for December 2021. Zac’s business earns about R 25 000 per month.
  • 2.2 What will his bank balance be at the end of December 2021?
  • 2.3 Do you think he should buy his own shop if the cost of the loan per month will be R 10 800? Give a reason for your answer.
  • 3.1 Match Column A to Column B. Write the letter from Column B in the table below. Column A 3.1 Financial Capital 3.2 Working Capital 3.3 Fixed Assets 3.4 Current Liabilities 3.5 Deficit 3.6 Budget 3.7 Fixed Expenses 3.8 Surplus 3.9 Statement of Net Worth 3.10 Foreign Exchange Column B A. Expenses are more than the income B. Plan of how to spend your future income C. Source of money to start a business D. Converting money to other denominations E. Income is more than expenses F. Used to run the business from day to day G. Value of the business that belongs to the owner H. Indicates your wealth at a specific time I. Will not be converted into cash within the next year J. Can be converted into cash within a year K. Cost that must be paid every month L. Short term loan M. Long term costs
  • 4.1 Why do people save money? Provide four reasons.
  • 4.2 Explain how a Community Savings Scheme (Stokvel) functions.
  • 1.1.3 Fill in the missing word. Use the words in the block below to complete the sentences. A(n)__________________________________________ is a written promise to pay an amount of money.
  • 1.1.4 Fill in the missing word. Use the words in the block below to complete the sentences. Money is an example of a _______________________ resource.
  • 2.3 Explain the role of money. (3)
  • 5.1 Provide a definition for the following concepts: a) Capital (2)
  • 5.1 b) Assets (2)
  • 5.1 c) Profit (2)
  • 5.1 d) Transaction (2)
  • 5.1 e) Income (2)
  • 5.2 List the five main types of Capital. (5)

Common mistakes

  • Confusing current and non-current assets.
  • Misunderstanding how a Stokvel operates.
  • Incorrectly identifying types of capital.
  • Misdefining financial terms such as depreciation.

Aligned to CAPS Grade 7 Economic and Management Sciences — Financial Concepts and Terminology.

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