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

2. What is a T-account used for?
Owners Equity or Worth
The side of an account that is increased
A tool for students to understand the difference between a debit and credit
Generally Accepted Accounting Principles

3. A drawing account is alwasy a debit or credit?
It is a debit
Income Statement
Owners Equity
Cash on hand for business emergency

4. Which side of the T-account is used to display debit?
The amount in the account of a business
Revenue
Left
Cash on hand for business emergency

5. What does a balance sheet calculate?
Sale - Invest - Expense - Personal Use
Assets=Liabilities+Owners Equity
Owners Equity or Worth
Proprietorship

6. What is a business owned by one person called?
Accounts Payable
Sale - Invest - Expense - Personal Use
Proprietorship
The side of an account that is increased

7. What is the accounting equation?
Generally Accepted Accounting Principles
Dow Jones
Assets=Liabilities+Owners Equity
A tool for students to understand the difference between a debit and credit

8. What is the account balance?
It is a debit
It is a debit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The amount in the account of a business

9. What is a Credit?
The side of an account that is increased
Decreasing Assets - Increasing Liabilities
Owners Equity or Worth
Assets=Liabilities+Owners Equity

10. If a liablility is decreasing is it a debit or a credit?
Cash on hand for business emergency
An asset
It is a debit
Assets=Liabilities+Owners Equity

11. What is a Normal Balance
The side of an account that is increased
It is a debit
It is a debit
Revenue

12. Which Public Stock is an average of the 30 most powerful companies in the US?
Decreasing Assets - Increasing Liabilities
It is a debit
Dow Jones
Credit

13. What is Insurance classified as?
An asset
Dow Jones
It is a debit
A tool for students to understand the difference between a debit and credit

14. owner's equity
Left
The amount in the account of a business
Accounts Payable
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

15. What is the classification of Rent
A tool for students to understand the difference between a debit and credit
The side of an account that is increased
Owners Equity
Accounts Payable

16. What is used to measure the profits and losses of a company?
Income Statement
Using perenthesis
Accounts Payable
The side of an account that is increased

17. What is the difference between equipment and supplies?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Income Statement
Sale - Invest - Expense - Personal Use
It is a debit

18. If an Asset is decreasing it is a...?
Sale - Invest - Expense - Personal Use
Owners Equity
Credit
Left

19. How do accountants express a negative number
It is a debit
Assets=Liabilities+Owners Equity
Generally Accepted Accounting Principles
Using perenthesis

20. What does GAAP stand for?
Owners Equity or Worth
Generally Accepted Accounting Principles
Sale - Invest - Expense - Personal Use
Assets=Liabilities+Owners Equity

21. What is Petty Cash?
Decreasing Assets - Increasing Liabilities
Cash on hand for business emergency
Revenue
Generally Accepted Accounting Principles

22. What are the 4 transactions that affect the worth of a company?
Revenue
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities
Assets=Liabilities+Owners Equity

23. What is an increase in owners equity resulting from the operation of business called?
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Owners Equity