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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 difference between equipment and supplies?
Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Proprietorship
Sale - Invest - Expense - Personal Use

2. What is a business owned by one person called?
Accounts Payable
Sale - Invest - Expense - Personal Use
Proprietorship
Cash on hand for business emergency

3. What is the classification of Rent
An asset
Dow Jones
Owners Equity
Revenue

4. What is an increase in owners equity resulting from the operation of business called?
Revenue
Owners Equity or Worth
Cash on hand for business emergency
Dow Jones

5. If a liablility is decreasing is it a debit or a credit?
Income Statement
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Sale - Invest - Expense - Personal Use
It is a debit

6. What does GAAP stand for?
Generally Accepted Accounting Principles
Owners Equity
Owners Equity or Worth
Left

7. What is Insurance classified as?
An asset
It is a debit
Owners Equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

8. Which Public Stock is an average of the 30 most powerful companies in the US?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Dow Jones
A tool for students to understand the difference between a debit and credit
The amount in the account of a business

9. What is a Credit?
Left
Decreasing Assets - Increasing Liabilities
Credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

10. What is the account balance?
The amount in the account of a business
Income Statement
Cash on hand for business emergency
Proprietorship

11. What is a Normal Balance
Sale - Invest - Expense - Personal Use
The side of an account that is increased
It is a debit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

12. How do accountants express a negative number
Using perenthesis
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Assets=Liabilities+Owners Equity
Income Statement

13. Which side of the T-account is used to display debit?
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
It is a debit
Generally Accepted Accounting Principles

14. What are the 4 transactions that affect the worth of a company?
Accounts Payable
The amount in the account of a business
Sale - Invest - Expense - Personal Use
Income Statement

15. A drawing account is alwasy a debit or credit?
A tool for students to understand the difference between a debit and credit
It is a debit
Decreasing Assets - Increasing Liabilities
An asset

16. Which is a liability: Accounts Receivable or Accounts Payable?
Generally Accepted Accounting Principles
An asset
Accounts Payable
Sale - Invest - Expense - Personal Use

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

18. What is the accounting equation?
It is a debit
Assets=Liabilities+Owners Equity
Revenue
Left

19. What is used to measure the profits and losses of a company?
It is a debit
An asset
Income Statement
Accounts Payable

20. What is Petty Cash?
It is a debit
Income Statement
The side of an account that is increased
Cash on hand for business emergency

21. What does a balance sheet calculate?
Assets=Liabilities+Owners Equity
Owners Equity
Owners Equity or Worth
The amount in the account of a business

22. If an Asset is decreasing it is a...?
Revenue
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.

23. What is a T-account used for?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Decreasing Assets - Increasing Liabilities
A tool for students to understand the difference between a debit and credit
Assets=Liabilities+Owners Equity