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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 does GAAP stand for?
Generally Accepted Accounting Principles
Revenue
Owners Equity
Credit

2. What is a Normal Balance
Owners Equity
Credit
The amount in the account of a business
The side of an account that is increased

3. How do accountants express a negative number
The amount in the account of a business
Using perenthesis
Cash on hand for business emergency
Assets=Liabilities+Owners Equity

4. Which side of the T-account is used to display debit?
Left
The side of an account that is increased
Proprietorship
It is a debit

5. What is a Credit?
Decreasing Assets - Increasing Liabilities
Accounts Payable
Sale - Invest - Expense - Personal Use
Owners Equity or Worth

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

7. Which Public Stock is an average of the 30 most powerful companies in the US?
A tool for students to understand the difference between a debit and credit
Dow Jones
Accounts Payable
Generally Accepted Accounting Principles

8. If an Asset is decreasing it is a...?
It is a debit
Credit
Generally Accepted Accounting Principles
Left

9. What is the accounting equation?
The side of an account that is increased
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Assets=Liabilities+Owners Equity
Generally Accepted Accounting Principles

10. What is the account balance?
The amount in the account of a business
Owners Equity or Worth
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
A tool for students to understand the difference between a debit and credit

11. What is the classification of Rent
Using perenthesis
Owners Equity
Accounts Payable
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

12. What is a T-account used for?
A tool for students to understand the difference between a debit and credit
Accounts Payable
Left
Sale - Invest - Expense - Personal Use

13. What is Insurance classified as?
Income Statement
Credit
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

14. owner's equity
An asset
Owners Equity or Worth
Credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

15. A drawing account is alwasy a debit or credit?
The side of an account that is increased
An asset
It is a debit
Owners Equity

16. What are the 4 transactions that affect the worth of a company?
An asset
Sale - Invest - Expense - Personal Use
Revenue
Decreasing Assets - Increasing Liabilities

17. Which is a liability: Accounts Receivable or Accounts Payable?
Revenue
Generally Accepted Accounting Principles
Using perenthesis
Accounts Payable

18. 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.
Sale - Invest - Expense - Personal Use

19. What is a business owned by one person called?
An asset
Proprietorship
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity

20. What is the difference between equipment and supplies?
Revenue
The amount in the account of a business
Owners Equity or Worth
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

21. What is Petty Cash?
Owners Equity or Worth
Cash on hand for business emergency
Assets=Liabilities+Owners Equity
Income Statement

22. What does a balance sheet calculate?
Owners Equity or Worth
Income Statement
Cash on hand for business emergency
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

23. What is used to measure the profits and losses of a company?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities
Income Statement