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Accounting Debit Credit Rule

Instructions:

Answer 23 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. What is a Credit?
Decreasing Assets - Increasing Liabilities
Revenue
It is a debit
Dow Jones

2. What are the 4 transactions that affect the worth of a company?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Sale - Invest - Expense - Personal Use
It is a debit

3. What does a balance sheet calculate?
Owners Equity or Worth
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Credit

4. If a liablility is decreasing is it a debit or a credit?
Proprietorship
Owners Equity or Worth
Left
It is a debit

5. Which side of the T-account is used to display debit?
Income Statement
Generally Accepted Accounting Principles
Left
The amount in the account of a business

6. What is the difference between equipment and supplies?
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity
Dow Jones

7. What does GAAP stand for?
The amount in the account of a business
Generally Accepted Accounting Principles
Dow Jones
Using perenthesis

8. What is a Normal Balance
Using perenthesis
Revenue
The side of an account that is increased
Owners Equity

9. What is the accounting equation?
Generally Accepted Accounting Principles
Accounts Payable
Assets=Liabilities+Owners Equity
Using perenthesis

10. How do accountants express a negative number
Left
Using perenthesis
Accounts Payable
Assets=Liabilities+Owners Equity

11. What is the account balance?
The amount in the account of a business
An asset
Using perenthesis
Proprietorship

12. owner's equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
It is a debit
Owners Equity
Cash on hand for business emergency

13. What is Insurance classified as?
Sale - Invest - Expense - Personal Use
An asset
Owners Equity or Worth
It is a debit

14. Which Public Stock is an average of the 30 most powerful companies in the US?
Dow Jones
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The amount in the account of a business
Cash on hand for business emergency

15. What is a business owned by one person called?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Proprietorship
A tool for students to understand the difference between a debit and credit
Income Statement

16. What is the classification of Rent
Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity or Worth
Credit

17. Which is a liability: Accounts Receivable or Accounts Payable?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business
It is a debit
Accounts Payable

18. What is an increase in owners equity resulting from the operation of business called?
Revenue
Using perenthesis
An asset
Cash on hand for business emergency

19. A drawing account is alwasy a debit or credit?
Credit
Assets=Liabilities+Owners Equity
Decreasing Assets - Increasing Liabilities
It is a debit

20. What is Petty Cash?
The side of an account that is increased
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Cash on hand for business emergency

21. What is a T-account used for?
It is a debit
A tool for students to understand the difference between a debit and credit
Owners Equity
The side of an account that is increased

22. What is used to measure the profits and losses of a company?
Generally Accepted Accounting Principles
Revenue
Dow Jones
Income Statement

23. If an Asset is decreasing it is a...?
Generally Accepted Accounting Principles
Accounts Payable
Sale - Invest - Expense - Personal Use
Credit