1. The goal of reporting realistic figures and never overstating assets or net income applies to the ________.

1. materiality concept
2. conservatism principle
3. disclosure principle
4. consistency principle

2. 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?

1. debit balance of $19,000
2. credit balance of $4,000
3. credit balance of $15,000
4. balance of $0

3. 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 ________.

1. $582
2. $600
3. $618
4. $621