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

2. Which is a liability: Accounts Receivable or Accounts Payable?
Revenue
Proprietorship
Accounts Payable
Decreasing Assets - Increasing Liabilities

3. What is a Credit?
Decreasing Assets - Increasing Liabilities
Credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business

4. What is the accounting equation?
The amount in the account of a business
Assets=Liabilities+Owners Equity
Owners Equity or Worth
Owners Equity

5. What is the account balance?
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Proprietorship
The amount in the account of a business

6. What is the difference between equipment and supplies?
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The amount in the account of a business

7. What is used to measure the profits and losses of a company?
The side of an account that is increased
Cash on hand for business emergency
Proprietorship
Income Statement

8. If an Asset is decreasing it is a...?
Credit
Dow Jones
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business

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

10. What is a T-account used for?
Accounts Payable
A tool for students to understand the difference between a debit and credit
Assets=Liabilities+Owners Equity
Left

11. A drawing account is alwasy a debit or credit?
It is a debit
Owners Equity
Using perenthesis
Credit

12. What are the 4 transactions that affect the worth of a company?
Sale - Invest - Expense - Personal Use
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Revenue
It is a debit

13. If a liablility is decreasing is it a debit or a credit?
Using perenthesis
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Generally Accepted Accounting Principles
It is a debit

14. What is an increase in owners equity resulting from the operation of business called?
Sale - Invest - Expense - Personal Use
Cash on hand for business emergency
The amount in the account of a business
Revenue

15. owner's equity
Accounts Payable
Cash on hand for business emergency
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

16. What is the classification of Rent
Owners Equity
It is a debit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

17. What is Petty Cash?
Decreasing Assets - Increasing Liabilities
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Sale - Invest - Expense - Personal Use
Cash on hand for business emergency

18. What does a balance sheet calculate?
Owners Equity or Worth
It is a debit
Credit
It is a debit

19. Which side of the T-account is used to display debit?
The side of an account that is increased
Accounts Payable
Left
Proprietorship

20. What is Insurance classified as?
An asset
Generally Accepted Accounting Principles
The side of an account that is increased
The amount in the account of a business

21. How do accountants express a negative number
A tool for students to understand the difference between a debit and credit
Decreasing Assets - Increasing Liabilities
It is a debit
Using perenthesis

22. Which Public Stock is an average of the 30 most powerful companies in the US?
Decreasing Assets - Increasing Liabilities
Dow Jones
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Using perenthesis

23. What is a business owned by one person called?
Using perenthesis
Owners Equity or Worth
Proprietorship
The side of an account that is increased