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