Choose the best answer for each of the following questions:

10. At May 1, 2017, Dietrich Company had beginning inventory consisting of 300 units with a unit cost of 3.50. During May, the company purchased inventory as follows:

600 units at 3.50

900 units at 4.00

The company sold 1,500 units during the month for 6 per unit. Dietrich uses the average-cost method. The average cost per unit for May is

A. 3.50.

B. 3.75.

C. 3.80.

D. 4.00.

E. Another answer.

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.