A Corporation Reports the Following Year-End Balance Sheet Data

question 88

Multiple Choice

A corporation reports the following year-end balance sheet data.

-The company's equity ratio equals:

• A)0.58
• B)1.27
• C)2.07
• D)0.37
• E)0.63

---

Definitions:

Overapplied Manufacturing Overhead

An instance where overhead costs budgeted for manufacturing surpass the real expenses incurred.

Underapplied Manufacturing Overhead

Refers to the situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products during a specific period.

Finished Goods Inventory

Represents the stock of completed products that are ready to be sold to customers.

Underapplied Manufacturing Overhead

A scenario in which the assigned manufacturing overhead expenses fall short of the real overhead costs experienced.