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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. Which side of the T-account is used to display debit?
Decreasing Assets - Increasing Liabilities
Proprietorship
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

2. What is a business owned by one person called?
Income Statement
Proprietorship
Sale - Invest - Expense - Personal Use
The side of an account that is increased

3. How do accountants express a negative number
Sale - Invest - Expense - Personal Use
Owners Equity
Using perenthesis
Cash on hand for business emergency

4. Which is a liability: Accounts Receivable or Accounts Payable?
Left
Owners Equity
Accounts Payable
Assets=Liabilities+Owners Equity

5. What is a T-account used for?
Accounts Payable
A tool for students to understand the difference between a debit and credit
Left
Owners Equity

6. If an Asset is decreasing it is a...?
Credit
Sale - Invest - Expense - Personal Use
Revenue
Decreasing Assets - Increasing Liabilities

7. What is a Normal Balance
Proprietorship
Owners Equity
Decreasing Assets - Increasing Liabilities
The side of an account that is increased

8. What is the accounting equation?
Assets=Liabilities+Owners Equity
Revenue
Credit
Sale - Invest - Expense - Personal Use

9. owner's equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity or Worth
Decreasing Assets - Increasing Liabilities
Dow Jones

10. What does a balance sheet calculate?
The amount in the account of a business
Owners Equity or Worth
Sale - Invest - Expense - Personal Use
A tool for students to understand the difference between a debit and credit

11. What is a Credit?
Decreasing Assets - Increasing Liabilities
It is a debit
It is a debit
An asset

12. What is the account balance?
An asset
The amount in the account of a business
Accounts Payable
Left

13. What is Insurance classified as?
An asset
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
It is a debit

14. What does GAAP stand for?
Generally Accepted Accounting Principles
Owners Equity or Worth
A tool for students to understand the difference between a debit and credit
The side of an account that is increased

15. What is Petty Cash?
Cash on hand for business emergency
Dow Jones
Credit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

16. What is used to measure the profits and losses of a company?
Income Statement
The side of an account that is increased
Generally Accepted Accounting Principles
A tool for students to understand the difference between a debit and credit

17. What is an increase in owners equity resulting from the operation of business called?
Using perenthesis
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Owners Equity or Worth

18. What are the 4 transactions that affect the worth of a company?
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
Credit
An asset

19. If a liablility is decreasing is it a debit or a credit?
It is a debit
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Accounts Payable

20. A drawing account is alwasy a debit or credit?
It is a debit
Using perenthesis
Sale - Invest - Expense - Personal Use
A tool for students to understand the difference between a debit and credit

21. What is the difference between equipment and supplies?
Dow Jones
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Generally Accepted Accounting Principles
The amount in the account of a business

22. Which Public Stock is an average of the 30 most powerful companies in the US?
The side of an account that is increased
Dow Jones
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Decreasing Assets - Increasing Liabilities

23. What is the classification of Rent
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity