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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 the classification of Rent
Cash on hand for business emergency
The amount in the account of a business
Owners Equity
Accounts Payable

2. What is a business owned by one person called?
Left
It is a debit
Accounts Payable
Proprietorship

3. What does a balance sheet calculate?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Income Statement
A tool for students to understand the difference between a debit and credit
Owners Equity or Worth

4. What is an increase in owners equity resulting from the operation of business called?
A tool for students to understand the difference between a debit and credit
Decreasing Assets - Increasing Liabilities
Income Statement
Revenue

5. Which Public Stock is an average of the 30 most powerful companies in the US?
Dow Jones
Generally Accepted Accounting Principles
Owners Equity or Worth
Revenue

6. owner's equity
Decreasing Assets - Increasing Liabilities
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The side of an account that is increased
An asset

7. What is Insurance classified as?
An asset
It is a debit
Assets=Liabilities+Owners Equity
Owners Equity

8. What is used to measure the profits and losses of a company?
Generally Accepted Accounting Principles
Owners Equity
Income Statement
Decreasing Assets - Increasing Liabilities

9. How do accountants express a negative number
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
An asset
Using perenthesis
Owners Equity

10. If an Asset is decreasing it is a...?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The side of an account that is increased
Credit
Accounts Payable

11. What is Petty Cash?
Assets=Liabilities+Owners Equity
Proprietorship
Cash on hand for business emergency
Credit

12. What is the accounting equation?
Left
Generally Accepted Accounting Principles
The amount in the account of a business
Assets=Liabilities+Owners Equity

13. What does GAAP stand for?
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
The amount in the account of a business
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

14. A drawing account is alwasy a debit or credit?
It is a debit
Income Statement
Generally Accepted Accounting Principles
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

15. Which side of the T-account is used to display debit?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Left
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Cash on hand for business emergency

16. Which is a liability: Accounts Receivable or Accounts Payable?
Accounts Payable
Owners Equity
Using perenthesis
Left

17. If a liablility is decreasing is it a debit or a credit?
Proprietorship
An asset
It is a debit
The side of an account that is increased

18. What is a Credit?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Decreasing Assets - Increasing Liabilities
Using perenthesis
Cash on hand for business emergency

19. What is the difference between equipment and supplies?
Revenue
Income Statement
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
A tool for students to understand the difference between a debit and credit

20. What is a Normal Balance
Assets=Liabilities+Owners Equity
The side of an account that is increased
Cash on hand for business emergency
It is a debit

21. What are the 4 transactions that affect the worth of a company?
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities
It is a debit
Cash on hand for business emergency

22. What is a T-account used for?
Using perenthesis
A tool for students to understand the difference between a debit and credit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity

23. What is the account balance?
Generally Accepted Accounting Principles
The amount in the account of a business
Left
It is a debit