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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. Payable
Increases stockholder equity
Liabilities
Always a liability
Record of Transactions

2. Posting
Right side
Copying data from the journal to the ledger
Always a liability
Assets

3. A credit increases..
Always an asset
Liabilities
Assets
Increases stockholder equity

4. Journal
Assets- Liabilities
Record of Transactions
Liabilities
Revenues - Expenses

5. Ledger
Left side
Revenues - Expenses
Grouping of accounts
Liabilities

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

7. A credit decreases...
Right side
Liabilities
Assets
Revenues - Expenses

8. Revenue
Increases stockholder equity
Always a liability
Assets
Side of account where increases are recorded

9. A debit decreases...
Liabilities
Cost of operating. Decreases stockholder equity
Left side
Increases stockholder equity

10. A debit increases...
Cost of operating. Decreases stockholder equity
Record of Transactions
Assets
Always an asset

11. Net Income
Side of account where increases are recorded
Always an asset
Revenues - Expenses
Assets

12. Receivable
Copying data from the journal to the ledger
Revenues - Expenses
Always an asset
Side of account where increases are recorded

13. Expense
Always a liability
Left side
Increases stockholder equity
Cost of operating. Decreases stockholder equity

14. Credit
Assets
Right side
Always a liability
Side of account where increases are recorded

15. Debit
Record of Transactions
Left side
Always an asset
Assets- Liabilities

16. Normal Balance
Side of account where increases are recorded
Always an asset
Revenues - Expenses
Liabilities