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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. What is the classification of Rent
Decreasing Assets - Increasing Liabilities
The amount in the account of a business
Owners Equity
Using perenthesis

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

3. How do accountants express a negative number
Owners Equity or Worth
Cash on hand for business emergency
Using perenthesis
A tool for students to understand the difference between a debit and credit

4. Which side of the T-account is used to display debit?
Owners Equity or Worth
Sale - Invest - Expense - Personal Use
Assets=Liabilities+Owners Equity
Left

5. What is a business owned by one person called?
An asset
Assets=Liabilities+Owners Equity
Left
Proprietorship

6. What is used to measure the profits and losses of a company?
A tool for students to understand the difference between a debit and credit
Income Statement
It is a debit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

7. Which Public Stock is an average of the 30 most powerful companies in the US?
Dow Jones
Generally Accepted Accounting Principles
The amount in the account of a business
Left

8. What is Petty Cash?
Dow Jones
The side of an account that is increased
Cash on hand for business emergency
Sale - Invest - Expense - Personal Use

9. What is a Normal Balance
Cash on hand for business emergency
The side of an account that is increased
Owners Equity
An asset

10. What is the account balance?
The amount in the account of a business
Assets=Liabilities+Owners Equity
It is a debit
Sale - Invest - Expense - Personal Use

11. What is the accounting equation?
Dow Jones
Decreasing Assets - Increasing Liabilities
Assets=Liabilities+Owners Equity
An asset

12. What is the difference between equipment and supplies?
Assets=Liabilities+Owners Equity
An asset
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

13. If a liablility is decreasing is it a debit or a credit?
Proprietorship
Income Statement
It is a debit
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?
Using perenthesis
Assets=Liabilities+Owners Equity
Revenue
Generally Accepted Accounting Principles

15. What is a T-account used for?
Proprietorship
Income Statement
Owners Equity or Worth
A tool for students to understand the difference between a debit and credit

16. Which is a liability: Accounts Receivable or Accounts Payable?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Accounts Payable
Left
Revenue

17. If an Asset is decreasing it is a...?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Left
Credit

18. What is Insurance classified as?
Proprietorship
Owners Equity or Worth
An asset
Dow Jones

19. What does GAAP stand for?
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

20. What is a Credit?
Decreasing Assets - Increasing Liabilities
Revenue
The side of an account that is increased
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

21. What does a balance sheet calculate?
Using perenthesis
Credit
Owners Equity or Worth
Revenue

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

23. owner's equity
It is a debit
Sale - Invest - Expense - Personal Use
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 __________