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Accounting Debit Credit Rule

Instructions:

Answer 23 questions in 15 minutes.
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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 used to measure the profits and losses of a company?
It is a debit
Income Statement
Owners Equity or Worth
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

2. owner's equity
Assets=Liabilities+Owners Equity
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.
Using perenthesis

3. What is the classification of Rent
Assets=Liabilities+Owners Equity
Accounts Payable
The amount in the account of a business
Owners Equity

4. What is the account balance?
The side of an account that is increased
The amount in the account of a business
Decreasing Assets - Increasing Liabilities
It is a debit

5. What does GAAP stand for?
Decreasing Assets - Increasing Liabilities
Owners Equity or Worth
Using perenthesis
Generally Accepted Accounting Principles

6. If a liablility is decreasing is it a debit or a credit?
Cash on hand for business emergency
It is a debit
Owners Equity
Sale - Invest - Expense - Personal Use

7. A drawing account is alwasy a debit or credit?
Accounts Payable
It is a debit
Owners Equity
Assets=Liabilities+Owners Equity

8. Which is a liability: Accounts Receivable or Accounts Payable?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Assets=Liabilities+Owners Equity
Accounts Payable
Credit

9. What is the accounting equation?
Owners Equity or Worth
It is a debit
Assets=Liabilities+Owners Equity
Accounts Payable

10. What is a Credit?
It is a debit
Decreasing Assets - Increasing Liabilities
It is a debit
Cash on hand for business emergency

11. What are the 4 transactions that affect the worth of a company?
Income Statement
Dow Jones
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities

12. What is a Normal Balance
The side of an account that is increased
Owners Equity
Revenue
Proprietorship

13. Which side of the T-account is used to display debit?
The side of an account that is increased
Dow Jones
Left
Credit

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

15. Which Public Stock is an average of the 30 most powerful companies in the US?
Proprietorship
Owners Equity
Dow Jones
Assets=Liabilities+Owners Equity

16. If an Asset is decreasing it is a...?
Dow Jones
Assets=Liabilities+Owners Equity
Owners Equity
Credit

17. What is a business owned by one person called?
Proprietorship
An asset
A tool for students to understand the difference between a debit and credit
Using perenthesis

18. What is a T-account used for?
An asset
Owners Equity
A tool for students to understand the difference between a debit and credit
Owners Equity or Worth

19. What is the difference between equipment and supplies?
It is a debit
Assets=Liabilities+Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Left

20. What does a balance sheet calculate?
An asset
Owners Equity or Worth
The amount in the account of a business
Sale - Invest - Expense - Personal Use

21. What is an increase in owners equity resulting from the operation of business called?
Revenue
Owners Equity
Accounts Payable
Dow Jones

22. What is Petty Cash?
Owners Equity
Decreasing Assets - Increasing Liabilities
Cash on hand for business emergency
Accounts Payable

23. What is Insurance classified as?
Decreasing Assets - Increasing Liabilities
Generally Accepted Accounting Principles
Proprietorship
An asset