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