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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 used to measure the profits and losses of a company?
Using perenthesis
Income Statement
Generally Accepted Accounting Principles
It is a debit

2. Which Public Stock is an average of the 30 most powerful companies in the US?
Income Statement
Dow Jones
Assets=Liabilities+Owners Equity
It is a debit

3. Which side of the T-account is used to display debit?
It is a debit
Left
Accounts Payable
Cash on hand for business emergency

4. What is a Normal Balance
Cash on hand for business emergency
It is a debit
The side of an account that is increased
Owners Equity or Worth

5. What is a Credit?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Using perenthesis
Decreasing Assets - Increasing Liabilities
Revenue

6. What does a balance sheet calculate?
Generally Accepted Accounting Principles
An asset
Using perenthesis
Owners Equity or Worth

7. If an Asset is decreasing it is a...?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
It is a debit
Credit
Revenue

8. What are the 4 transactions that affect the worth of a company?
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Sale - Invest - Expense - Personal Use
Credit

9. How do accountants express a negative number
Revenue
The side of an account that is increased
Using perenthesis
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

10. What is the classification of Rent
Owners Equity
Generally Accepted Accounting Principles
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Sale - Invest - Expense - Personal Use

11. What is the account balance?
Credit
The amount in the account of a business
Decreasing Assets - Increasing Liabilities
It is a debit

12. What is a business owned by one person called?
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
An asset
Sale - Invest - Expense - Personal Use

13. A drawing account is alwasy a debit or credit?
It is a debit
The amount in the account of a business
Left
Using perenthesis

14. What is Insurance classified as?
Cash on hand for business emergency
An asset
The amount in the account of a business
A tool for students to understand the difference between a debit and credit

15. What is a T-account used for?
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
Accounts Payable

16. What is the accounting equation?
Assets=Liabilities+Owners Equity
Decreasing Assets - Increasing Liabilities
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Accounts Payable

17. Which is a liability: Accounts Receivable or Accounts Payable?
Accounts Payable
Assets=Liabilities+Owners Equity
A tool for students to understand the difference between a debit and credit
Credit

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

19. What is Petty Cash?
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
An asset
The amount in the account of a business

20. What is the difference between equipment and supplies?
Proprietorship
It is a debit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
It is a debit

21. What does GAAP stand for?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity or Worth
Proprietorship
Generally Accepted Accounting Principles

22. What is an increase in owners equity resulting from the operation of business called?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Income Statement
Proprietorship
Revenue

23. If a liablility is decreasing is it a debit or a credit?
The side of an account that is increased
A tool for students to understand the difference between a debit and credit
Owners Equity
It is a debit