Test your basic knowledge |

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 is a T-account used for?
An asset
A tool for students to understand the difference between a debit and credit
Dow Jones
It is a debit

2. What is the accounting equation?
An asset
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
It is a debit
Assets=Liabilities+Owners Equity

3. Which Public Stock is an average of the 30 most powerful companies in the US?
Revenue
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Dow Jones
Accounts Payable

4. How do accountants express a negative number
Revenue
Using perenthesis
Dow Jones
Assets=Liabilities+Owners Equity

5. What is the difference between equipment and supplies?
Proprietorship
A tool for students to understand the difference between a debit and credit
Accounts Payable
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

6. What does a balance sheet calculate?
Cash on hand for business emergency
Left
Using perenthesis
Owners Equity or Worth

7. What is a Normal Balance
An asset
The side of an account that is increased
Owners Equity or Worth
It is a debit

8. What is a business owned by one person called?
Proprietorship
Credit
Income Statement
The side of an account that is increased

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

10. What is Petty Cash?
Revenue
Cash on hand for business emergency
Generally Accepted Accounting Principles
Credit

11. If an Asset is decreasing it is a...?
Credit
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Using perenthesis
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

12. What is an increase in owners equity resulting from the operation of business called?
Accounts Payable
An asset
It is a debit
Revenue

13. What is Insurance classified as?
Sale - Invest - Expense - Personal Use
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
The side of an account that is increased
An asset

14. owner's equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Sale - Invest - Expense - Personal Use
Owners Equity
Generally Accepted Accounting Principles

15. What is the account balance?
Owners Equity or Worth
The amount in the account of a business
Using perenthesis
Revenue

16. What is used to measure the profits and losses of a company?
It is a debit
Dow Jones
Income Statement
Owners Equity

17. If a liablility is decreasing is it a debit or a credit?
Cash on hand for business emergency
Decreasing Assets - Increasing Liabilities
Owners Equity or Worth
It is a debit

18. What is the classification of Rent
The amount in the account of a business
Cash on hand for business emergency
An asset
Owners Equity

19. What does GAAP stand for?
Dow Jones
Generally Accepted Accounting Principles
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

20. A drawing account is alwasy a debit or credit?
It is a debit
A tool for students to understand the difference between a debit and credit
Owners Equity or Worth
Cash on hand for business emergency

21. Which is a liability: Accounts Receivable or Accounts Payable?
Decreasing Assets - Increasing Liabilities
Accounts Payable
Income Statement
Sale - Invest - Expense - Personal Use

22. Which side of the T-account is used to display debit?
The side of an account that is increased
Income Statement
A tool for students to understand the difference between a debit and credit
Left

23. What is a Credit?
Sale - Invest - Expense - Personal Use
Assets=Liabilities+Owners Equity
Decreasing Assets - Increasing Liabilities
Proprietorship