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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?
Sale - Invest - Expense - Personal Use
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

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

3. What is the account balance?
The amount in the account of a business
Generally Accepted Accounting Principles
Left
An asset

4. What does GAAP stand for?
Owners Equity or Worth
Proprietorship
Decreasing Assets - Increasing Liabilities
Generally Accepted Accounting Principles

5. What is the accounting equation?
Assets=Liabilities+Owners Equity
Owners Equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Cash on hand for business emergency

6. What is Insurance classified as?
Sale - Invest - Expense - Personal Use
Income Statement
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
An asset

7. What is used to measure the profits and losses of a company?
Decreasing Assets - Increasing Liabilities
Proprietorship
Income Statement
Revenue

8. What is a business owned by one person called?
Proprietorship
An asset
Sale - Invest - Expense - Personal Use
Revenue

9. A drawing account is alwasy a debit or credit?
The amount in the account of a business
It is a debit
An asset
Proprietorship

10. 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 __________
It is a debit
Decreasing Assets - Increasing Liabilities
Credit

11. Which side of the T-account is used to display debit?
Revenue
It is a debit
Left
Income Statement

12. If an Asset is decreasing it is a...?
The amount in the account of a business
It is a debit
Accounts Payable
Credit

13. Which Public Stock is an average of the 30 most powerful companies in the US?
The amount in the account of a business
A tool for students to understand the difference between a debit and credit
Dow Jones
Left

14. owner's equity
Decreasing Assets - Increasing Liabilities
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.
Cash on hand for business emergency

15. What is an increase in owners equity resulting from the operation of business called?
The side of an account that is increased
Left
It is a debit
Revenue

16. Which is a liability: Accounts Receivable or Accounts Payable?
A tool for students to understand the difference between a debit and credit
Assets=Liabilities+Owners Equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Accounts Payable

17. What is the classification of Rent
Owners Equity
Left
Cash on hand for business emergency
Assets=Liabilities+Owners Equity

18. What is a Normal Balance
It is a debit
Owners Equity or Worth
The side of an account that is increased
Decreasing Assets - Increasing Liabilities

19. How do accountants express a negative number
Sale - Invest - Expense - Personal Use
It is a debit
Using perenthesis
Revenue

20. What is a T-account used for?
An asset
A tool for students to understand the difference between a debit and credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Credit

21. What is a Credit?
Dow Jones
Generally Accepted Accounting Principles
Decreasing Assets - Increasing Liabilities
A tool for students to understand the difference between a debit and credit

22. What does a balance sheet calculate?
Owners Equity or Worth
Accounts Payable
Assets=Liabilities+Owners Equity
Sale - Invest - Expense - Personal Use

23. What is the difference between equipment and supplies?
Owners Equity or Worth
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Left
It is a debit