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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 is a Normal Balance
An asset
Dow Jones
The side of an account that is increased
Decreasing Assets - Increasing Liabilities

2. What is the classification of Rent
Owners Equity
Credit
The amount in the account of a business
It is a debit

3. What is a T-account used for?
It is a debit
Generally Accepted Accounting Principles
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 __________

4. What is a Credit?
The side of an account that is increased
Left
Decreasing Assets - Increasing Liabilities
Income Statement

5. What is used to measure the profits and losses of a company?
Decreasing Assets - Increasing Liabilities
Income Statement
Credit
Using perenthesis

6. What is a business owned by one person called?
When an owner withdraws cash from the usiness - the transaction affects both assets and __________
Owners Equity or Worth
Sale - Invest - Expense - Personal Use
Proprietorship

7. What is an increase in owners equity resulting from the operation of business called?
Revenue
Credit
The amount in the account of a business
Income Statement

8. What is the account balance?
Income Statement
Accounts Payable
The amount in the account of a business
An asset

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

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

11. What are the 4 transactions that affect the worth of a company?
Revenue
Accounts Payable
Dow Jones
Sale - Invest - Expense - Personal Use

12. What does a balance sheet calculate?
A tool for students to understand the difference between a debit and credit
Owners Equity or Worth
Sale - Invest - Expense - Personal Use
Credit

13. What does GAAP stand for?
Credit
Generally Accepted Accounting Principles
Decreasing Assets - Increasing Liabilities
When an owner withdraws cash from the usiness - the transaction affects both assets and __________

14. A drawing account is alwasy a debit or credit?
It is a debit
Revenue
Generally Accepted Accounting Principles
The side of an account that is increased

15. What is Insurance classified as?
An asset
Revenue
Dow Jones
Assets=Liabilities+Owners Equity

16. Which is a liability: Accounts Receivable or Accounts Payable?
Owners Equity or Worth
An asset
Decreasing Assets - Increasing Liabilities
Accounts Payable

17. What is the accounting equation?
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
A tool for students to understand the difference between a debit and credit
Assets=Liabilities+Owners Equity
Owners Equity

18. How do accountants express a negative number
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Using perenthesis
The amount in the account of a business
Proprietorship

19. What is the difference between equipment and supplies?
Owners Equity or Worth
Supplies are worth nothing after a fiscal year - while equipment remains an asset after the year.
Proprietorship
Revenue

20. What is Petty Cash?
Assets=Liabilities+Owners Equity
It is a debit
Using perenthesis
Cash on hand for business emergency

21. If an Asset is decreasing it is a...?
Proprietorship
An asset
Credit
Decreasing Assets - Increasing Liabilities

22. If a liablility is decreasing is it a debit or a credit?
It is a debit
The side of an account that is increased
Credit
Left

23. Which side of the T-account is used to display debit?
Accounts Payable
Left
Owners Equity or Worth
An asset