In animation, a pencil test is a movie made from the original rough pencil drawings. Pencil tests are made so that animators can see what their animation looks like in motion before the drawings get sent off to be inked and painted and eventually shown in the finished movie.
Animation students generally don't go past the pencil test stage while learning the trade.
John: "Mike, your pencil test came out all crappy and wiggly."
Mike: "At least I have time to re-work it before class."