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Test your basic knowledge |
Accounting Debit Credit Rules
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 16 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. A credit decreases...
Left side
Cost of operating. Decreases stockholder equity
Assets
Liabilities
2. Payable
Liabilities
Always a liability
Record of Transactions
Assets- Liabilities
3. Owners Equity
Side of account where increases are recorded
Assets- Liabilities
Right side
Record of Transactions
4. Revenue
Increases stockholder equity
Record of Transactions
Assets
Liabilities
5. Ledger
Revenues - Expenses
Left side
Grouping of accounts
Right side
6. Posting
Right side
Grouping of accounts
Copying data from the journal to the ledger
Liabilities
7. Journal
Always a liability
Liabilities
Record of Transactions
Assets- Liabilities
8. A debit decreases...
Liabilities
Revenues - Expenses
Always a liability
Left side
9. A credit increases..
Side of account where increases are recorded
Increases stockholder equity
Revenues - Expenses
Liabilities
10. Debit
Copying data from the journal to the ledger
Grouping of accounts
Revenues - Expenses
Left side
11. Credit
Left side
Record of Transactions
Revenues - Expenses
Right side
12. A debit increases...
Record of Transactions
Side of account where increases are recorded
Assets
Assets- Liabilities
13. Expense
Record of Transactions
Cost of operating. Decreases stockholder equity
Always an asset
Assets
14. Receivable
Always an asset
Record of Transactions
Liabilities
Liabilities
15. Normal Balance
Side of account where increases are recorded
Record of Transactions
Assets- Liabilities
Revenues - Expenses
16. Net Income
Liabilities
Copying data from the journal to the ledger
Revenues - Expenses
Side of account where increases are recorded