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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 Public Stock is an average of the 30 most powerful companies in the US?
Generally Accepted Accounting Principles
An asset
Dow Jones
The side of an account that is increased

2. What is an increase in owners equity resulting from the operation of business called?
Revenue
It is a debit
Dow Jones
Sale - Invest - Expense - Personal Use

3. What is a business owned by one person called?
Proprietorship
It is a debit
Revenue
Credit

4. What is the classification of Rent
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity
Cash on hand for business emergency

5. What are the 4 transactions that affect the worth of a company?
Using perenthesis
The side of an account that is increased
Sale - Invest - Expense - Personal Use
An asset

6. Which is a liability: Accounts Receivable or Accounts Payable?
The side of an account that is increased
Accounts Payable
Assets=Liabilities+Owners Equity
Generally Accepted Accounting Principles

7. owner's equity
Accounts Payable
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
Generally Accepted Accounting Principles

8. What is Insurance classified as?
An asset
Decreasing Assets - Increasing Liabilities
Accounts Payable
Owners Equity or Worth

9. If a liablility is decreasing is it a debit or a credit?
It is a debit
Accounts Payable
Dow Jones
Credit

10. How do accountants express a negative number
Using perenthesis
Accounts Payable
Credit
Revenue

11. What is the accounting equation?
Assets=Liabilities+Owners Equity
Left
Income Statement
An asset

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

13. What is a Credit?
Accounts Payable
It is a debit
Assets=Liabilities+Owners Equity
Decreasing Assets - Increasing Liabilities

14. A drawing account is alwasy a debit or credit?
It is a debit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The amount in the account of a business
Income Statement

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

16. What does GAAP stand for?
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.
Dow Jones

17. What is a Normal Balance
The side of an account that is increased
Cash on hand for business emergency
It is a debit
Proprietorship

18. What is Petty Cash?
An asset
Generally Accepted Accounting Principles
Cash on hand for business emergency
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

19. What is used to measure the profits and losses of a company?
Income Statement
Using perenthesis
Owners Equity
The amount in the account of a business

20. Which side of the T-account is used to display debit?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The side of an account that is increased
Dow Jones
Left

21. What does a balance sheet calculate?
Assets=Liabilities+Owners Equity
The side of an account that is increased
Owners Equity or Worth
An asset

22. What is the account balance?
Revenue
The amount in the account of a business
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
The side of an account that is increased

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