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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 a balance sheet calculate?
Generally Accepted Accounting Principles
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Owners Equity or Worth

2. What are the 4 transactions that affect the worth of a company?
Accounts Payable
Sale - Invest - Expense - Personal Use
Dow Jones
An asset

3. What is Insurance classified as?
Decreasing Assets - Increasing Liabilities
A tool for students to understand the difference between a debit and credit
The side of an account that is increased
An asset

4. What is a business owned by one person called?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The side of an account that is increased
Proprietorship
Generally Accepted Accounting Principles

5. If a liablility is decreasing is it a debit or a credit?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Using perenthesis
It is a debit
Proprietorship

6. What is the difference between equipment and supplies?
An asset
Owners Equity
Cash on hand for business emergency
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

7. What is the account balance?
Left
Proprietorship
An asset
The amount in the account of a business

8. What is Petty Cash?
The amount in the account of a business
Cash on hand for business emergency
Owners Equity or Worth
It is a debit

9. Which is a liability: Accounts Receivable or Accounts Payable?
Accounts Payable
It is a debit
Generally Accepted Accounting Principles
The amount in the account of a business

10. How do accountants express a negative number
The side of an account that is increased
Decreasing Assets - Increasing Liabilities
Using perenthesis
Left

11. What is used to measure the profits and losses of a company?
Income Statement
It is a debit
Sale - Invest - Expense - Personal Use
It is a debit

12. If an Asset is decreasing it is a...?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Decreasing Assets - Increasing Liabilities
An asset
Credit

13. A drawing account is alwasy a debit or credit?
Using perenthesis
It is a debit
Proprietorship
Credit

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

15. What does GAAP stand for?
Dow Jones
The side of an account that is increased
Accounts Payable
Generally Accepted Accounting Principles

16. What is the accounting equation?
The amount in the account of a business
Revenue
Assets=Liabilities+Owners Equity
A tool for students to understand the difference between a debit and credit

17. What is a T-account used for?
Using perenthesis
A tool for students to understand the difference between a debit and credit
Owners Equity or Worth
It is a debit

18. Which Public Stock is an average of the 30 most powerful companies in the US?
Proprietorship
Dow Jones
Generally Accepted Accounting Principles
Using perenthesis

19. What is a Credit?
Income Statement
Proprietorship
Generally Accepted Accounting Principles
Decreasing Assets - Increasing Liabilities

20. What is a Normal Balance
Left
Credit
The side of an account that is increased
Generally Accepted Accounting Principles

21. Which side of the T-account is used to display debit?
Assets=Liabilities+Owners Equity
Decreasing Assets - Increasing Liabilities
Left
Proprietorship

22. What is an increase in owners equity resulting from the operation of business called?
Revenue
Accounts Payable
Proprietorship
It is a debit

23. What is the classification of Rent
Owners Equity
An asset
A tool for students to understand the difference between a debit and credit
Dow Jones