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Test your basic knowledge |
Accounting Debit Credit Rule
Start Test
Study First
Subject
:
business-skills
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