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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 an increase in owners equity resulting from the operation of business called?
Credit
The side of an account that is increased
Revenue
Using perenthesis

2. What is Petty Cash?
It is a debit
Generally Accepted Accounting Principles
Credit
Cash on hand for business emergency

3. Which is a liability: Accounts Receivable or Accounts Payable?
Accounts Payable
Owners Equity
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 __________

4. What is a business owned by one person called?
Credit
Proprietorship
It is a debit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

5. owner's equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
A tool for students to understand the difference between a debit and credit
An asset
Owners Equity

6. What is the accounting equation?
Dow Jones
An asset
Cash on hand for business emergency
Assets=Liabilities+Owners Equity

7. What are the 4 transactions that affect the worth of a company?
Sale - Invest - Expense - Personal Use
Cash on hand for business emergency
Left
Income Statement

8. What is a Normal Balance
Using perenthesis
Dow Jones
Assets=Liabilities+Owners Equity
The side of an account that is increased

9. Which side of the T-account is used to display debit?
Sale - Invest - Expense - Personal Use
Left
Assets=Liabilities+Owners Equity
A tool for students to understand the difference between a debit and credit

10. What is the classification of Rent
Owners Equity
Assets=Liabilities+Owners Equity
It is a debit
Decreasing Assets - Increasing Liabilities

11. What does a balance sheet calculate?
Owners Equity or Worth
Accounts Payable
The amount in the account of a business
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

12. A drawing account is alwasy a debit or credit?
Dow Jones
Accounts Payable
It is a debit
A tool for students to understand the difference between a debit and credit

13. What does GAAP stand for?
Credit
Generally Accepted Accounting Principles
Assets=Liabilities+Owners Equity
An asset

14. How do accountants express a negative number
Proprietorship
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Using perenthesis
Accounts Payable

15. If an Asset is decreasing it is a...?
Owners Equity or Worth
Credit
Proprietorship
The amount in the account of a business

16. What is the difference between equipment and supplies?
Revenue
Using perenthesis
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Credit

17. If a liablility is decreasing is it a debit or a credit?
Owners Equity or Worth
The side of an account that is increased
It is a debit
Using perenthesis

18. What is a Credit?
Decreasing Assets - Increasing Liabilities
Revenue
A tool for students to understand the difference between a debit and credit
Using perenthesis

19. What is used to measure the profits and losses of a company?
It is a debit
Sale - Invest - Expense - Personal Use
Income Statement
Accounts Payable

20. Which Public Stock is an average of the 30 most powerful companies in the US?
Using perenthesis
A tool for students to understand the difference between a debit and credit
Credit
Dow Jones

21. What is a T-account used for?
Generally Accepted Accounting Principles
Accounts Payable
It is a debit
A tool for students to understand the difference between a debit and credit

22. What is Insurance classified as?
Owners Equity or Worth
An asset
Left
Dow Jones

23. What is the account balance?
Owners Equity
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 __________