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

2. If a liablility is decreasing is it a debit or a credit?
Left
It is a debit
Owners Equity
Revenue

3. How do accountants express a negative number
Using perenthesis
Generally Accepted Accounting Principles
An asset
Income Statement

4. What is Insurance classified as?
Income Statement
An asset
A tool for students to understand the difference between a debit and credit
Cash on hand for business emergency

5. What is a Normal Balance
The side of an account that is increased
Cash on hand for business emergency
It is a debit
The amount in the account of a business

6. If an Asset is decreasing it is a...?
Proprietorship
Using perenthesis
Decreasing Assets - Increasing Liabilities
Credit

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

8. owner's equity
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Cash on hand for business emergency
Proprietorship
Left

9. 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.
Left
It is a debit
Owners Equity or Worth

10. A drawing account is alwasy a debit or credit?
Proprietorship
It is a debit
Assets=Liabilities+Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

11. What does a balance sheet calculate?
Decreasing Assets - Increasing Liabilities
Credit
Accounts Payable
Owners Equity or Worth

12. What is a T-account used for?
Proprietorship
Left
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

13. What is an increase in owners equity resulting from the operation of business called?
Decreasing Assets - Increasing Liabilities
It is a debit
Generally Accepted Accounting Principles
Revenue

14. Which Public Stock is an average of the 30 most powerful companies in the US?
Proprietorship
Owners Equity or Worth
Dow Jones
The side of an account that is increased

15. What is the classification of Rent
Using perenthesis
Dow Jones
Owners Equity
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.

16. What does GAAP stand for?
Generally Accepted Accounting Principles
Owners Equity
Dow Jones
Credit

17. What is a business owned by one person called?
Income Statement
Assets=Liabilities+Owners Equity
Left
Proprietorship

18. What is Petty Cash?
Owners Equity
Sale - Invest - Expense - Personal Use
Cash on hand for business emergency
Decreasing Assets - Increasing Liabilities

19. What is a Credit?
Generally Accepted Accounting Principles
Decreasing Assets - Increasing Liabilities
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
It is a debit

20. What is used to measure the profits and losses of a company?
Cash on hand for business emergency
An asset
Accounts Payable
Income Statement

21. 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
The amount in the account of a business
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

22. What are the 4 transactions that affect the worth of a company?
Owners Equity
Sale - Invest - Expense - Personal Use
Revenue
Left

23. What is the accounting equation?
The side of an account that is increased
Owners Equity or Worth
Cash on hand for business emergency
Assets=Liabilities+Owners Equity