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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 account balance?
Owners Equity
Assets=Liabilities+Owners Equity
The amount in the account of a business
Proprietorship

2. How do accountants express a negative number
It is a debit
A tool for students to understand the difference between a debit and credit
Revenue
Using perenthesis

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

4. What is the classification of Rent
The side of an account that is increased
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity
Left

5. Which is a liability: Accounts Receivable or Accounts Payable?
It is a debit
Proprietorship
Owners Equity
Accounts Payable

6. What is an increase in owners equity resulting from the operation of business called?
Cash on hand for business emergency
Owners Equity
Revenue
Generally Accepted Accounting Principles

7. A drawing account is alwasy a debit or credit?
It is a debit
A tool for students to understand the difference between a debit and credit
Left
Sale - Invest - Expense - Personal Use

8. If a liablility is decreasing is it a debit or a credit?
It is a debit
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Generally Accepted Accounting Principles

9. What is a business owned by one person called?
Dow Jones
Proprietorship
Decreasing Assets - Increasing Liabilities
An asset

10. What is the accounting equation?
Dow Jones
Assets=Liabilities+Owners Equity
The amount in the account of a business
Proprietorship

11. What is used to measure the profits and losses of a company?
Income Statement
Left
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The side of an account that is increased

12. What is a Credit?
Revenue
The amount in the account of a business
Decreasing Assets - Increasing Liabilities
Dow Jones

13. What does GAAP stand for?
Generally Accepted Accounting Principles
Proprietorship
Revenue
Using perenthesis

14. What are the 4 transactions that affect the worth of a company?
Generally Accepted Accounting Principles
Decreasing Assets - Increasing Liabilities
Income Statement
Sale - Invest - Expense - Personal Use

15. Which side of the T-account is used to display debit?
Left
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
An asset
Decreasing Assets - Increasing Liabilities

16. What is a Normal Balance
The side of an account that is increased
Sale - Invest - Expense - Personal Use
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Decreasing Assets - Increasing Liabilities

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

18. What is the difference between equipment and supplies?
Proprietorship
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Assets=Liabilities+Owners Equity
Owners Equity

19. What is Insurance classified as?
An asset
Assets=Liabilities+Owners Equity
Dow Jones
The side of an account that is increased

20. owner's equity
Credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The side of an account that is increased
Accounts Payable

21. Which Public Stock is an average of the 30 most powerful companies in the US?
Generally Accepted Accounting Principles
Using perenthesis
Dow Jones
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

22. What is Petty Cash?
Cash on hand for business emergency
The amount in the account of a business
It is a debit
Accounts Payable

23. What does a balance sheet calculate?
Generally Accepted Accounting Principles
Owners Equity or Worth
Left
The side of an account that is increased