ACC 561 Final Exam 3 with Answers (VERIFIED)

1. Henson Company began the year with retained earnings of $380,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson’s retained earnings at the end of the year? 2. In performing a vertical analysis, the base for sales revenues on the income statement is: 3. Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or over-application of overhead for the period: 4. Which is the last step in developing the master budget? 5. Based on the following data, what is the amount of working capital? 6. Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not? 7. Which of the following statements concerning users of accounting information is incorrect? 8. La More Company had the following transactions during 2016: o Sales of $9,000 on account o Collected $4,000 for services to be performed in 2017 o Paid $3,750 cash in salaries for 2016 o Purchased airline tickets for $500 in December for a trip to take place in 2017 What is La More’s 2016 net income using accrual accounting? 9. Differences between a job order cost system and a process cost system include all of the following 10. The Mac Company has four plants nationwide that cost $350 million. The current fair value of the plants is $300 million. The plants will be reported as assets at: 11. If there are no units in process at the beginning of the period, then: DOWNLOAD FOR MORE SOLUTIONS