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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 side of the T-account is used to display debit?
Owners Equity
Revenue
Sale - Invest - Expense - Personal Use
Left

2. Which is a liability: Accounts Receivable or Accounts Payable?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Accounts Payable
Income Statement
Cash on hand for business emergency

3. What is the classification of Rent
Owners Equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Left
The amount in the account of a business

4. What is the account balance?
It is a debit
Sale - Invest - Expense - Personal Use
The amount in the account of a business
Proprietorship

5. What is an increase in owners equity resulting from the operation of business called?
Using perenthesis
The amount in the account of a business
Revenue
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

6. How do accountants express a negative number
A tool for students to understand the difference between a debit and credit
Using perenthesis
Generally Accepted Accounting Principles
Assets=Liabilities+Owners Equity

7. What is the difference between equipment and supplies?
Income Statement
The side of an account that is increased
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity

8. owner's equity
Owners Equity
Income Statement
Generally Accepted Accounting Principles
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

9. A drawing account is alwasy a debit or credit?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Using perenthesis
It is a debit
Sale - Invest - Expense - Personal Use

10. What is Petty Cash?
Generally Accepted Accounting Principles
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The amount in the account of a business
Cash on hand for business emergency

11. What are the 4 transactions that affect the worth of a company?
Dow Jones
Sale - Invest - Expense - Personal Use
Owners Equity
It is a debit

12. What does a balance sheet calculate?
Revenue
Owners Equity or Worth
Decreasing Assets - Increasing Liabilities
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

13. What is used to measure the profits and losses of a company?
Generally Accepted Accounting Principles
Income Statement
Using perenthesis
Cash on hand for business emergency

14. Which Public Stock is an average of the 30 most powerful companies in the US?
Proprietorship
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Dow Jones
Cash on hand for business emergency

15. If an Asset is decreasing it is a...?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Credit
An asset
Using perenthesis

16. What is the accounting equation?
A tool for students to understand the difference between a debit and credit
It is a debit
Assets=Liabilities+Owners Equity
An asset

17. What does GAAP stand for?
Owners Equity
Generally Accepted Accounting Principles
Decreasing Assets - Increasing Liabilities
Credit

18. If a liablility is decreasing is it a debit or a credit?
Owners Equity
Decreasing Assets - Increasing Liabilities
It is a debit
Income Statement

19. What is a business owned by one person called?
Proprietorship
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
A tool for students to understand the difference between a debit and credit
Credit

20. What is a Credit?
An asset
Left
It is a debit
Decreasing Assets - Increasing Liabilities

21. What is Insurance classified as?
An asset
Cash on hand for business emergency
Revenue
Sale - Invest - Expense - Personal Use

22. What is a Normal Balance
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Revenue
The side of an account that is increased
Assets=Liabilities+Owners Equity

23. What is a T-account used for?
A tool for students to understand the difference between a debit and credit
The amount in the account of a business
Revenue
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.