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