Test 1 Student Name Date:... Each Question 2 points Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $50,000 in expenses, and the company paid dividends of $15,000 59. The net income reported by Mel's Mechanical Repair Shop for the year was A) $180,000 B) $ 40,000 C) 50,000 D) S 30,000 E) None of the above Which of the following is the correct order of the steps in the accounting cycle? A) Adjust, report, analyze, record, and close B) Record, report, analyze, adjust, and close C) Report, analyze, close, record, and adjust D) Analyze, record, adjust, report, and close 1. Recording the payment of dividends to shareholders involves: A) Debiting Dividends and crediting Cash B) Debiting Cash and Common Stock C) Debiting Withdrawal Expense and crediting Cash D) Debiting Notes Payable and crediting Cash Which of the following adjustments is an example of an accrual? A) The recording of wages earned by employees but not yet paid B) The recording of periodic depreciation expense on equipment C) The recording of service fees earned that had been received in cash at an earlier time D) The recording of supplies expense for the period Which of the following is a permanent account? A) Accounts Receivable B) Professional Fees Earned C) Advertising Expense D) Cash Dividends An individual record of increa ses and decreases in specific assets, liabilities, and stockholders' equity A) An account B) A normal balance C) A general ledger D) A trial balance The term debit refers to: A) The left side of an account B) The right side of an account C) The side of an account on which decreases are recorded D) Both B and C