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Test your basic knowledge |
Accounting Debit Credit Rule
Start Test
Study First
Subject
:
business-skills
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?
Dow Jones
Generally Accepted Accounting Principles
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Income Statement
2. owner's equity
Proprietorship
Owners Equity or Worth
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The amount in the account of a business
3. How do accountants express a negative number
Using perenthesis
Proprietorship
The side of an account that is increased
Revenue
4. What is a T-account used for?
A tool for students to understand the difference between a debit and credit
Cash on hand for business emergency
Accounts Payable
Using perenthesis
5. What is the classification of Rent
A tool for students to understand the difference between a debit and credit
Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
An asset
6. Which Public Stock is an average of the 30 most powerful companies in the US?
Dow Jones
Sale - Invest - Expense - Personal Use
Credit
An asset
7. What are the 4 transactions that affect the worth of a company?
Decreasing Assets - Increasing Liabilities
It is a debit
Sale - Invest - Expense - Personal Use
An asset
8. What is a Credit?
Generally Accepted Accounting Principles
It is a debit
Decreasing Assets - Increasing Liabilities
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
9. Which is a liability: Accounts Receivable or Accounts Payable?
A tool for students to understand the difference between a debit and credit
Left
Cash on hand for business emergency
Accounts Payable
10. What is Petty Cash?
Proprietorship
Dow Jones
Owners Equity or Worth
Cash on hand for business emergency
11. What does a balance sheet calculate?
The amount in the account of a business
Income Statement
Owners Equity or Worth
It is a debit
12. Which side of the T-account is used to display debit?
Left
Cash on hand for business emergency
The side of an account that is increased
Assets=Liabilities+Owners Equity
13. What is an increase in owners equity resulting from the operation of business called?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Accounts Payable
Revenue
A tool for students to understand the difference between a debit and credit
14. What does GAAP stand for?
Generally Accepted Accounting Principles
It is a debit
Cash on hand for business emergency
Owners Equity or Worth
15. What is the account balance?
The amount in the account of a business
A tool for students to understand the difference between a debit and credit
Generally Accepted Accounting Principles
Cash on hand for business emergency
16. What is the accounting equation?
Income Statement
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Assets=Liabilities+Owners Equity
17. What is a business owned by one person called?
Cash on hand for business emergency
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Proprietorship
Owners Equity
18. What is the difference between equipment and supplies?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The side of an account that is increased
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Generally Accepted Accounting Principles
19. If a liablility is decreasing is it a debit or a credit?
It is a debit
Proprietorship
Cash on hand for business emergency
Owners Equity or Worth
20. A drawing account is alwasy a debit or credit?
It is a debit
Owners Equity or Worth
Left
Cash on hand for business emergency
21. What is a Normal Balance
Revenue
It is a debit
The side of an account that is increased
Left
22. What is Insurance classified as?
Dow Jones
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Credit
An asset
23. If an Asset is decreasing it is a...?
An asset
Revenue
Credit
Owners Equity or Worth