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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. If an Asset is decreasing it is a...?
An asset
Cash on hand for business emergency
Proprietorship
Credit

2. What is Petty Cash?
Owners Equity or Worth
Sale - Invest - Expense - Personal Use
Cash on hand for business emergency
An asset

3. Which is a liability: Accounts Receivable or Accounts Payable?
Credit
Cash on hand for business emergency
Owners Equity or Worth
Accounts Payable

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

5. A drawing account is alwasy a debit or credit?
Revenue
It is a debit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The side of an account that is increased

6. What does a balance sheet calculate?
Owners Equity or Worth
It is a debit
Using perenthesis
Generally Accepted Accounting Principles

7. How do accountants express a negative number
Using perenthesis
Dow Jones
Owners Equity
Generally Accepted Accounting Principles

8. Which Public Stock is an average of the 30 most powerful companies in the US?
Accounts Payable
Assets=Liabilities+Owners Equity
Dow Jones
Generally Accepted Accounting Principles

9. What is used to measure the profits and losses of a company?
Revenue
Left
Proprietorship
Income Statement

10. What is a Normal Balance
The side of an account that is increased
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
An asset
Decreasing Assets - Increasing Liabilities

11. What is Insurance classified as?
Left
Proprietorship
Using perenthesis
An asset

12. What is the accounting equation?
A tool for students to understand the difference between a debit and credit
Cash on hand for business emergency
Assets=Liabilities+Owners Equity
The side of an account that is increased

13. What is the difference between equipment and supplies?
The amount in the account of a business
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Using perenthesis

14. What is a business owned by one person called?
A tool for students to understand the difference between a debit and credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Proprietorship
It is a debit

15. What is the classification of Rent
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity
Assets=Liabilities+Owners Equity
Left

16. What is a T-account used for?
Income Statement
A tool for students to understand the difference between a debit and credit
Generally Accepted Accounting Principles
Owners Equity or Worth

17. owner's equity
The side of an account that is increased
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity or Worth

18. What does GAAP stand for?
Income Statement
Generally Accepted Accounting Principles
Cash on hand for business emergency
Revenue

19. What are the 4 transactions that affect the worth of a company?
Proprietorship
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
Credit

20. Which side of the T-account is used to display debit?
It is a debit
Left
Generally Accepted Accounting Principles
Owners Equity or Worth

21. What is a Credit?
Decreasing Assets - Increasing Liabilities
The side of an account that is increased
Credit
Generally Accepted Accounting Principles

22. What is the account balance?
Generally Accepted Accounting Principles
Income Statement
Owners Equity or Worth
The amount in the account of a business

23. If a liablility is decreasing is it a debit or a credit?
A tool for students to understand the difference between a debit and credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
It is a debit
Assets=Liabilities+Owners Equity