Accounting 2 - Module 3 Review

Which of the following is NOT a characteristic of an accounting event?

• must be a result of a management decision
• must be specific to the entity for which records are kept
• must be measurable in monetary terms
• must impact the firm's assets, liabilities, and/or OE

Expenses are increased with a

• debit
• credit

Which of the following is an index for the accounts listed in the ledger? 

• chart of accounts
• trial balance
• adjusted trial balance
• ledger account index

Which of the following could not be an adjusting entry?

• an increase to an expense and a decrease to an asset
• a decrease to a liability and an increase to a revenue
• a decrease to an asset and a decrease to a liability
• an increase to an expense and an increase to a liability

After closing entries are made which of the following accounts will have balances?

• Assets, Revenue, Liability
• Liabilities, Assets, Expenses
• Owner's Equity, Assets, Liabilities
• Assets, Liabilities, Expenses

Which of the following results in a revenue event?

• stock is issued for cash
• a telephone bill is received but not paid
• a customer pays for merchandise purchased earlier
• a customer buys merchandise on account

Which of the following events results in an expense event?

• paid for merchandise previously purchased on account
• received utility bill but did not pay it.
• paid rent for the next three months.
• provided services to a client.

Which of the following could not be net pay?

• gross pay less FICA, union dues, income tax withheld
• gross pay less FICA, health insurance, income tax withheld
• gross pay less FICA, income tax withheld
• gross pay less FICA, income tax, ,federal unemployment taxes

Payroll deductions are a(n) ____________ to the employer at the time they are withheld.

• expense
• loss
• liability
• revenue

All of the following payroll taxes are expenses to an employer except:

• social security
• federal income tax
• federal unemployment
• state unemployment