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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. What does GAAP stand for?
Cash on hand for business emergency
Income Statement
A tool for students to understand the difference between a debit and credit
Generally Accepted Accounting Principles

2. A drawing account is alwasy a debit or credit?
Owners Equity or Worth
The amount in the account of a business
It is a debit
An asset

3. What is the classification of Rent
Credit
Owners Equity
Proprietorship
Sale - Invest - Expense - Personal Use

4. What is a Normal Balance
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
Sale - Invest - Expense - Personal Use

5. If a liablility is decreasing is it a debit or a credit?
Credit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
It is a debit
Owners Equity

6. What is a business owned by one person called?
Credit
Revenue
Left
Proprietorship

7. Which Public Stock is an average of the 30 most powerful companies in the US?
Dow Jones
Decreasing Assets - Increasing Liabilities
Proprietorship
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

8. What does a balance sheet calculate?
Dow Jones
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Owners Equity or Worth
Cash on hand for business emergency

9. If an Asset is decreasing it is a...?
Credit
Accounts Payable
Generally Accepted Accounting Principles
Cash on hand for business emergency

10. owner's equity
Dow Jones
Sale - Invest - Expense - Personal Use
It is a debit
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

11. What is the account balance?
It is a debit
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 __________
The amount in the account of a business

12. What is a T-account used for?
The side of an account that is increased
Left
Proprietorship
A tool for students to understand the difference between a debit and credit

13. Which is a liability: Accounts Receivable or Accounts Payable?
Owners Equity
Accounts Payable
Using perenthesis
Generally Accepted Accounting Principles

14. What is a Credit?
Proprietorship
Owners Equity or Worth
Sale - Invest - Expense - Personal Use
Decreasing Assets - Increasing Liabilities

15. Which side of the T-account is used to display debit?
The amount in the account of a business
A tool for students to understand the difference between a debit and credit
Owners Equity
Left

16. What is used to measure the profits and losses of a company?
The side of an account that is increased
Income Statement
It is a debit
Dow Jones

17. What is the difference between equipment and supplies?
Generally Accepted Accounting Principles
Proprietorship
Cash on hand for business emergency
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

18. What is the accounting equation?
Credit
It is a debit
Proprietorship
Assets=Liabilities+Owners Equity

19. What is an increase in owners equity resulting from the operation of business called?
Owners Equity or Worth
Proprietorship
Revenue
The side of an account that is increased

20. How do accountants express a negative number
Using perenthesis
Credit
Decreasing Assets - Increasing Liabilities
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

21. What is Insurance classified as?
It is a debit
Proprietorship
An asset
Owners Equity

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

23. What are the 4 transactions that affect the worth of a company?
Sale - Invest - Expense - Personal Use
Generally Accepted Accounting Principles
Assets=Liabilities+Owners Equity
Dow Jones