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