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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 are the 4 transactions that affect the worth of a company?
It is a debit
Sale - Invest - Expense - Personal Use
Proprietorship
The side of an account that is increased

2. What is an increase in owners equity resulting from the operation of business called?
Left
The amount in the account of a business
Revenue
Accounts Payable

3. A drawing account is alwasy a debit or credit?
A tool for students to understand the difference between a debit and credit
Income Statement
It is a debit
Dow Jones

4. Which side of the T-account is used to display debit?
Left
Decreasing Assets - Increasing Liabilities
It is a debit
Income Statement

5. What is the difference between equipment and supplies?
Revenue
Income Statement
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.

6. What is Insurance classified as?
Cash on hand for business emergency
An asset
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

7. What does GAAP stand for?
Sale - Invest - Expense - Personal Use
It is a debit
Generally Accepted Accounting Principles
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

8. What is a Credit?
Revenue
Decreasing Assets - Increasing Liabilities
Cash on hand for business emergency
It is a debit

9. What is the account balance?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business
Generally Accepted Accounting Principles
Cash on hand for business emergency

10. Which Public Stock is an average of the 30 most powerful companies in the US?
Dow Jones
Sale - Invest - Expense - Personal Use
Assets=Liabilities+Owners Equity
Left

11. What is Petty Cash?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Cash on hand for business emergency
Assets=Liabilities+Owners Equity

12. What does a balance sheet calculate?
It is a debit
Income Statement
Owners Equity or Worth
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

13. What is the classification of Rent
Revenue
An asset
Owners Equity
Assets=Liabilities+Owners Equity

14. What is used to measure the profits and losses of a company?
Income Statement
Proprietorship
The side of an account that is increased
Credit

15. What is the accounting equation?
Assets=Liabilities+Owners Equity
Owners Equity
It is a debit
Cash on hand for business emergency

16. What is a Normal Balance
An asset
Owners Equity or Worth
The side of an account that is increased
Left

17. Which is a liability: Accounts Receivable or Accounts Payable?
The side of an account that is increased
Owners Equity
Cash on hand for business emergency
Accounts Payable

18. If a liablility is decreasing is it a debit or a credit?
The side of an account that is increased
Proprietorship
It is a debit
Left

19. What is a business owned by one person called?
Decreasing Assets - Increasing Liabilities
Proprietorship
Generally Accepted Accounting Principles
Dow Jones

20. owner's equity
Sale - Invest - Expense - Personal Use
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Using perenthesis

21. How do accountants express a negative number
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Using perenthesis
An asset

22. What is a T-account used for?
Cash on hand for business emergency
A tool for students to understand the difference between a debit and credit
The side of an account that is increased
Owners Equity

23. If an Asset is decreasing it is a...?
An asset
Credit
Owners Equity or Worth
The side of an account that is increased