11. ----------- An inventory system that keeps a running computerized record of merchandise A. Perpetual Inventory System B. Merchandise Inventory account C. Cash Basis Accounting D. Accrual Basis Accounting

12. Revenue is earned when the business has ____. A. entered into an agreement with the customer about the goods or services to be delivered B. prepared a journal entry to record revenue C. received cash from the customer before goods or services are delivered D. delivered a good or service to the customer

13. The goal of reporting realistic figures and never overstating assets or net income applies to the ____. A. materiality concept B. conservatism principle C. disclosure principle D. consistency principle

14. ABC Company earned revenues of $19,000 and incurred expenses of $4,000. The company declared and paid cash dividends of $1,500. What is the balance in the Income Summary account after closing net income or loss to the Retained Earnings account? A. debit balance of $19,000 B. credit balance of $4,000 C. credit balance of $15,000 D. balance of $0 E. Another answer.

15. An invoice of $600 for merchandise purchased is showing 3/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day, the amount to be paid is ____. A. $582 B. $600 C. $618 D. $621 E. Another answer.