MULTIPART QUESTION 2 1. Which of the following effects will always occur for a company reporting net income? Total assets will increase Total liabilities will decrease Retained Earnings will increase Dividends will increase 1 points 1. Which of the following events does not result in the recording of an expense? receipt of a bill from the telephone company for the current month's telephone service purchase of gas for a fill-up of the company car payment of principal on a note due to the bank payment of wages to employees for services rendered in the current month 1 points 1. Which of the following expenses is not considered to be an estimate when first recorded? Depreciation expense Income tax expense Interest expense Uncollectible accounts expense 1 points 1+ Which of the following is an example of an Accrual? interest earned from an investment that will be collected next month collection of a payment from a customer for services yet to be provided purchase of equipment as an investing activity payment in advance to the landlord of the next 6 months rent 1 points 1. Which of the following is not a part of the accounting cycle covered in chapter 2? trial balance ledger journal adjusted trial balance 1 points 1. Which of the following is not a typical reason for making an adjusting entry? Converting an asset to a different asset Converting an asset to an expense Converting a liability to a revenue