ACC 561 Final Exam 3 with Answers (ACC 561)

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 overh...

1. Which of the following statements concerning users of accounting information is incorrect? 2. Miller Manufacturing’s degree of operating leverage is 1.5. Warren Corporation’s degree of operating leverage is 3. Warren’s earnings would go up (or down) by ________ as much as Miller’s with an equal increase (or decrease) in sales.​ 3. The investigation of materials price variance usually begins in the:​ 4. Which of the following statements is not true?​ 5. Kimble Compan...