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Accounting Debit Credit Rules

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. Owners Equity
Left side
Assets- Liabilities
Side of account where increases are recorded
Assets

2. Ledger
Assets
Increases stockholder equity
Grouping of accounts
Cost of operating. Decreases stockholder equity

3. Net Income
Always an asset
Revenues - Expenses
Liabilities
Copying data from the journal to the ledger

4. Journal
Assets
Left side
Record of Transactions
Liabilities

5. Normal Balance
Side of account where increases are recorded
Revenues - Expenses
Assets
Left side

6. Receivable
Liabilities
Always an asset
Side of account where increases are recorded
Cost of operating. Decreases stockholder equity

7. A debit increases...
Right side
Assets- Liabilities
Assets
Revenues - Expenses

8. A debit decreases...
Liabilities
Always an asset
Revenues - Expenses
Always a liability

9. Revenue
Left side
Assets- Liabilities
Cost of operating. Decreases stockholder equity
Increases stockholder equity

10. A credit decreases...
Always a liability
Right side
Grouping of accounts
Assets

11. Payable
Copying data from the journal to the ledger
Grouping of accounts
Always a liability
Assets

12. Debit
Copying data from the journal to the ledger
Left side
Right side
Cost of operating. Decreases stockholder equity

13. Expense
Revenues - Expenses
Cost of operating. Decreases stockholder equity
Liabilities
Side of account where increases are recorded

14. Credit
Always an asset
Liabilities
Right side
Increases stockholder equity

15. Posting
Always a liability
Liabilities
Cost of operating. Decreases stockholder equity
Copying data from the journal to the ledger

16. A credit increases..
Liabilities
Right side
Always a liability
Copying data from the journal to the ledger