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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. How do accountants express a negative number
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities
Using perenthesis
The amount in the account of a business

2. What does GAAP stand for?
Dow Jones
Generally Accepted Accounting Principles
Left
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

3. What is a Credit?
Decreasing Assets - Increasing Liabilities
A tool for students to understand the difference between a debit and credit
Accounts Payable
The side of an account that is increased

4. What is used to measure the profits and losses of a company?
Decreasing Assets - Increasing Liabilities
An asset
Income Statement
Cash on hand for business emergency

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

6. Which Public Stock is an average of the 30 most powerful companies in the US?
A tool for students to understand the difference between a debit and credit
Accounts Payable
The side of an account that is increased
Dow Jones

7. What is Insurance classified as?
Using perenthesis
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
An asset
Sale - Invest - Expense - Personal Use

8. What is an increase in owners equity resulting from the operation of business called?
Owners Equity or Worth
A tool for students to understand the difference between a debit and credit
Revenue
The side of an account that is increased

9. What is the difference between equipment and supplies?
Using perenthesis
Credit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Assets=Liabilities+Owners Equity

10. What is a Normal Balance
An asset
Cash on hand for business emergency
The side of an account that is increased
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

11. What does a balance sheet calculate?
The side of an account that is increased
Credit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity or Worth

12. Which is a liability: Accounts Receivable or Accounts Payable?
It is a debit
Assets=Liabilities+Owners Equity
Owners Equity or Worth
Accounts Payable

13. What is the accounting equation?
Generally Accepted Accounting Principles
Cash on hand for business emergency
Assets=Liabilities+Owners Equity
The side of an account that is increased

14. A drawing account is alwasy a debit or credit?
It is a debit
Income Statement
Using perenthesis
Left

15. What is a T-account used for?
Accounts Payable
A tool for students to understand the difference between a debit and credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business

16. If an Asset is decreasing it is a...?
Credit
Accounts Payable
A tool for students to understand the difference between a debit and credit
Proprietorship

17. What is Petty Cash?
It is a debit
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Decreasing Assets - Increasing Liabilities

18. What is the classification of Rent
Owners Equity
Sale - Invest - Expense - Personal Use
Using perenthesis
Income Statement

19. If a liablility is decreasing is it a debit or a credit?
Generally Accepted Accounting Principles
It is a debit
The amount in the account of a business
Owners Equity or Worth

20. Which side of the T-account is used to display debit?
Cash on hand for business emergency
Dow Jones
Revenue
Left

21. What is a business owned by one person called?
It is a debit
A tool for students to understand the difference between a debit and credit
Proprietorship
It is a debit

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

23. What are the 4 transactions that affect the worth of a company?
The amount in the account of a business
Sale - Invest - Expense - Personal Use
An asset
Assets=Liabilities+Owners Equity