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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?
Left
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The amount in the account of a business
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

2. What is a business owned by one person called?
Left
Assets=Liabilities+Owners Equity
Proprietorship
It is a debit

3. If a liablility is decreasing is it a debit or a credit?
Proprietorship
Owners Equity
An asset
It is a debit

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

5. If an Asset is decreasing it is a...?
The amount in the account of a business
Left
The side of an account that is increased
Credit

6. A drawing account is alwasy a debit or credit?
A tool for students to understand the difference between a debit and credit
It is a debit
Generally Accepted Accounting Principles
The side of an account that is increased

7. What is used to measure the profits and losses of a company?
Left
Proprietorship
An asset
Income Statement

8. What is the account balance?
The amount in the account of a business
Dow Jones
An asset
Owners Equity or Worth

9. Which is a liability: Accounts Receivable or Accounts Payable?
Cash on hand for business emergency
Revenue
Accounts Payable
It is a debit

10. Which Public Stock is an average of the 30 most powerful companies in the US?
Owners Equity or Worth
Dow Jones
Proprietorship
The amount in the account of a business

11. owner's equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Decreasing Assets - Increasing Liabilities
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Generally Accepted Accounting Principles

12. What does a balance sheet calculate?
Owners Equity or Worth
It is a debit
Assets=Liabilities+Owners Equity
The amount in the account of a business

13. What is the difference between equipment and supplies?
It is a debit
Dow Jones
Credit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

14. What are the 4 transactions that affect the worth of a company?
Decreasing Assets - Increasing Liabilities
Sale - Invest - Expense - Personal Use
It is a debit
An asset

15. What is a T-account used for?
Using perenthesis
The amount in the account of a business
A tool for students to understand the difference between a debit and credit
Cash on hand for business emergency

16. What does GAAP stand for?
Using perenthesis
Generally Accepted Accounting Principles
An asset
Dow Jones

17. What is the classification of Rent
Owners Equity
An asset
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities

18. What is Insurance classified as?
Decreasing Assets - Increasing Liabilities
It is a debit
Generally Accepted Accounting Principles
An asset

19. What is a Credit?
An asset
Using perenthesis
Left
Decreasing Assets - Increasing Liabilities

20. What is Petty Cash?
Left
Generally Accepted Accounting Principles
Cash on hand for business emergency
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

21. What is the accounting equation?
Assets=Liabilities+Owners Equity
Income Statement
It is a debit
Cash on hand for business emergency

22. How do accountants express a negative number
Using perenthesis
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Sale - Invest - Expense - Personal Use
An asset

23. What is an increase in owners equity resulting from the operation of business called?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Revenue
Cash on hand for business emergency
Proprietorship