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Accounting Debit Credit Rule

Instructions:

Answer 23 questions in 15 minutes.
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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?
A tool for students to understand the difference between a debit and credit
Using perenthesis
The side of an account that is increased
Sale - Invest - Expense - Personal Use

2. Which side of the T-account is used to display debit?
Generally Accepted Accounting Principles
Proprietorship
Left
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

3. If an Asset is decreasing it is a...?
The amount in the account of a business
Credit
Sale - Invest - Expense - Personal Use
It is a debit

4. What does a balance sheet calculate?
Owners Equity or Worth
Owners Equity
The side of an account that is increased
Accounts Payable

5. What is a T-account used for?
Income Statement
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 __________

6. What is a Normal Balance
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Cash on hand for business emergency
The side of an account that is increased
It is a debit

7. owner's equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
It is a debit
Revenue
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

8. What is a Credit?
Decreasing Assets - Increasing Liabilities
Sale - Invest - Expense - Personal Use
Revenue
Owners Equity

9. Which Public Stock is an average of the 30 most powerful companies in the US?
Left
Dow Jones
It is a debit
Income Statement

10. What is Petty Cash?
A tool for students to understand the difference between a debit and credit
Cash on hand for business emergency
Left
The amount in the account of a business

11. A drawing account is alwasy a debit or credit?
Accounts Payable
Proprietorship
Generally Accepted Accounting Principles
It is a debit

12. What is the accounting equation?
Assets=Liabilities+Owners Equity
Sale - Invest - Expense - Personal Use
Cash on hand for business emergency
The amount in the account of a business

13. How do accountants express a negative number
Dow Jones
The amount in the account of a business
Cash on hand for business emergency
Using perenthesis

14. What is an increase in owners equity resulting from the operation of business called?
Revenue
It is a debit
Decreasing Assets - Increasing Liabilities
Left

15. What is Insurance classified as?
Using perenthesis
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
An asset
Sale - Invest - Expense - Personal Use

16. What does GAAP stand for?
Cash on hand for business emergency
Generally Accepted Accounting Principles
The amount in the account of a business
Proprietorship

17. What is the classification of Rent
Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Generally Accepted Accounting Principles
Dow Jones

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

19. What is a business owned by one person called?
Proprietorship
Income Statement
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Decreasing Assets - Increasing Liabilities

20. What is used to measure the profits and losses of a company?
Sale - Invest - Expense - Personal Use
Assets=Liabilities+Owners Equity
Owners Equity or Worth
Income Statement

21. If a liablility is decreasing is it a debit or a credit?
It is a debit
An asset
Accounts Payable
Generally Accepted Accounting Principles

22. What is the account balance?
The amount in the account of a business
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Income Statement

23. What is the difference between equipment and supplies?
It is a debit
Decreasing Assets - Increasing Liabilities
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

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Accounting Debit Credit Rule

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