9. A company just starting business made the following four inventory purchases in June: 150 units 200 units 200 units 150 units 520 780 840 June 10 une 28 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is A) S800. B) $2,800. C) $2,000. D) $767 10. If beginning inventory is understated by $10,000, the effect of this error in the current period is Overstated Overstated Understated Understated Overstated Understated Understated Overstatecd B) 11. Sales revenues are usually considered earned when A) an order is received. B) adjusting entries are made. C) cash is received from credit sales. D) goods have been transferred from the seller to the buyer. 12. Under a consignment arrangement, the A) B) C) D) consignee has ownership when the goods are in the consignee's possession. consignor has ownership until goods are shipped to the consignee. consignor has ownership until goods are sold to a customer. consigned goods are included in the inventory of the consignee. 13. The operating cycle of a merchandiser is A) B) C) D) generally shorter than it is for a service company. generally longer than it is for a service company. about the same as for a service company. always one year in length. 14. Internal control is most effective when several people are responsible for a given task. A) True B) False 15. Merchandise inventory is reported as a long-term asset on the balance sheet. A) True B) False 16. At April 30, Mareska Company has the following bank information: cash balance per bank $4,600; outstanding checks $280; deposits in transit $550; credit memo for interest $10; bank service charge S20. What is Mareska's adjusted cash balance on April 30? A) $4,870 B) $4,860 C) $4,880 D) $4,330