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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. How do accountants express a negative number
Revenue
The amount in the account of a business
Using perenthesis
It is a debit

2. What is Petty Cash?
Cash on hand for business emergency
A tool for students to understand the difference between a debit and credit
Sale - Invest - Expense - Personal Use
Left

3. If a liablility is decreasing is it a debit or a credit?
Owners Equity or Worth
Dow Jones
Income Statement
It is a debit

4. What is the account balance?
Sale - Invest - Expense - Personal Use
The amount in the account of a business
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

5. What is a T-account used for?
A tool for students to understand the difference between a debit and credit
Generally Accepted Accounting Principles
Using perenthesis
Left

6. What is Insurance classified as?
Cash on hand for business emergency
Accounts Payable
An asset
It is a debit

7. What is a Credit?
Credit
Decreasing Assets - Increasing Liabilities
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Proprietorship

8. What does GAAP stand for?
Using perenthesis
Generally Accepted Accounting Principles
The amount in the account of a business
Income Statement

9. Which is a liability: Accounts Receivable or Accounts Payable?
Left
The amount in the account of a business
Accounts Payable
Cash on hand for business emergency

10. What does a balance sheet calculate?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business
The side of an account that is increased
Owners Equity or Worth

11. owner's equity
Dow Jones
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Assets=Liabilities+Owners Equity
Revenue

12. A drawing account is alwasy a debit or credit?
Credit
The amount in the account of a business
It is a debit
Generally Accepted Accounting Principles

13. What is the difference between equipment and supplies?
Credit
A tool for students to understand the difference between a debit and credit
Cash on hand for business emergency
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

14. What is an increase in owners equity resulting from the operation of business called?
It is a debit
Proprietorship
Revenue
An asset

15. What is a business owned by one person called?
The amount in the account of a business
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Proprietorship
It is a debit

16. What is the classification of Rent
Cash on hand for business emergency
Dow Jones
Accounts Payable
Owners Equity

17. What are the 4 transactions that affect the worth of a company?
Credit
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
Cash on hand for business emergency

18. 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
Owners Equity
The amount in the account of a business

19. Which side of the T-account is used to display debit?
Generally Accepted Accounting Principles
Accounts Payable
Left
Cash on hand for business emergency

20. What is a Normal Balance
Cash on hand for business emergency
The side of an account that is increased
A tool for students to understand the difference between a debit and credit
Owners Equity or Worth

21. What is the accounting equation?
Assets=Liabilities+Owners Equity
Left
Income Statement
Credit

22. Which Public Stock is an average of the 30 most powerful companies in the US?
It is a debit
Dow Jones
An asset
Using perenthesis

23. What is used to measure the profits and losses of a company?
Income Statement
Accounts Payable
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Decreasing Assets - Increasing Liabilities