Accounting Final Review

The accounting equation may be expressed as:

• L - OE = A

• Revenue = net income - expenses

• OE = A - L

• Revenues - expenses = net income

Indicate the correct order for the acronym for the financial statements.

• BSREIS

• ISOEBS

• ISBSOE

• OEISBS

Amounts owed to the business by its customers

• wages receivable

• wages payable

• accounts receivable

• accounts payable

Decreases to owner's equity may come from:

• revues and expenses

• expenses and drawing

• assets and liabilities

• net income and expenses

The increase side of an account is called the:

• debit side

• credit side

• abnormal balance

• normal balance

Federal income tax that is withheld from the employee's earnings is NOT subject to which of the following?

• number of sick days

• number of allowances

• total earnings

• marital status

The account that would be credited for the amount of tax collected and paid on sales would be:

• sales

• cash

• sales tax payable

• accounts payable

What are the three taxes that the employer is responsible for paying for payroll?

• FICA, FUTA, SUTA

• SIT, FUTA, FICA

• FUTA, SUTA, FIT

• FICA, FIT, SIT

The account credited to replenish the petty cash fund is:

• libation expense

• petty cash

• cash short & over

• cash

A credit

• decreases owner's equity

• decreases liabilities

• is on the right side

• increases assets