COMPLETE GUIDE TO PSC FINANCIAL AND BUSINESS
SKILLS EXAM
COMPLETE GUIDE TO PSC FINANCIAL AND BUSINESS
SKILLS EXAM LATWST UPDATES 2026 NEWEST EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) ALREADY GRADED A+
Accounting: What costs should be considered when making non-routine decisions? (3) -
ANSWERS-The price of material, Factory overhead costs, and the price of labor
Accounting: Total product/ units produced and sold equals?? - ANSWERS-Product Cost per Unit
Accounting: What is a general explanation of what the contribution margin is? - ANSWERS-The
difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months are generally planned? - ANSWERS-
12 months
Accounting: Which of the following is not one of the weaknesses of standard costing -
ANSWERS-It makes accounting for price increases more accurate
,Accounting: What are the potential ways to find the price of what a produced products should
cost? (3) - ANSWERS-Product cost concept, total cost concept, and variable cost concept
Accounting: Which report is the connecting link between the income statement and the balance
sheet? - ANSWERS-Cash flow statement
The net cash flow from operating activities normally differs from the amount of net income for
the period. - ANSWERS-True
Accounting: Expense accounts would have a balance on which side? - ANSWERS-Left side
Accounting: A profit-making business operating as a separated legal entity and in which
ownership is divided into shares of stock is known as a... - ANSWERS-Corporation]
Accounting: A debt may slightly - ANSWERS-Increase in an asset account
Accounting: What would be classified as a current asset on the balance sheet - ANSWERS-
Accounts receivable
Accounting: What are the elements of internal control? (3) - ANSWERS-Control environment,
monitoring, and control procedures.
True or False: A cash distribution of earnings by a corporation to its stockholders is called a
CASH DIVIDEND. The 3 conditions that a corporation must meet to pay a cash dividend are:
sufficient retained earnings, sufficient cash, and formal action by the board of directors. -
ANSWERS-True
Accounting: Factors in computing depreciation are? - ANSWERS-Initial cost + residual value =
depreciable
, Accounting: The statement of cash flows reports a firm's major cash inflows and outflows for a
period. It provides useful information about a company's ability to do the following?? -
ANSWERS-Meet its financial obligations, generate cash from operations, and maintain and
expand its operating capacity
Accounting: True or False: Notes receivables are amounts that customers owe for which a
formal, written instrument of credit has been issued. If longer than a year it is considered an
investment. - ANSWERS-True
Accounting: The excess of current assets of a business over its current liabilities is called? -
ANSWERS-Working capital
Accounting: What 2 categories are considered under period costs? - ANSWERS-selling expenses
and administrative expenses
Accounting: The effect of a difference in the number of units sold, assuming no charge in unit
sales price or unit cost is... - ANSWERS-Quantity factor
Accounting: A cost that will not be affected by later decisions is termed an - ANSWERS-Sunk
Cost
Accounting: The unfavorable volume variance may be due to all but the following facts... -
ANSWERS-Unexpected increases in the cost of utilities
Accounting: What budget allows for adjustments in activity levels? - ANSWERS-Flexible budget
Accounting: A budget that summarizes future plans for the acquisition of fixed assets is the... -
ANSWERS-Capital expenditures budget
SKILLS EXAM
COMPLETE GUIDE TO PSC FINANCIAL AND BUSINESS
SKILLS EXAM LATWST UPDATES 2026 NEWEST EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) ALREADY GRADED A+
Accounting: What costs should be considered when making non-routine decisions? (3) -
ANSWERS-The price of material, Factory overhead costs, and the price of labor
Accounting: Total product/ units produced and sold equals?? - ANSWERS-Product Cost per Unit
Accounting: What is a general explanation of what the contribution margin is? - ANSWERS-The
difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months are generally planned? - ANSWERS-
12 months
Accounting: Which of the following is not one of the weaknesses of standard costing -
ANSWERS-It makes accounting for price increases more accurate
,Accounting: What are the potential ways to find the price of what a produced products should
cost? (3) - ANSWERS-Product cost concept, total cost concept, and variable cost concept
Accounting: Which report is the connecting link between the income statement and the balance
sheet? - ANSWERS-Cash flow statement
The net cash flow from operating activities normally differs from the amount of net income for
the period. - ANSWERS-True
Accounting: Expense accounts would have a balance on which side? - ANSWERS-Left side
Accounting: A profit-making business operating as a separated legal entity and in which
ownership is divided into shares of stock is known as a... - ANSWERS-Corporation]
Accounting: A debt may slightly - ANSWERS-Increase in an asset account
Accounting: What would be classified as a current asset on the balance sheet - ANSWERS-
Accounts receivable
Accounting: What are the elements of internal control? (3) - ANSWERS-Control environment,
monitoring, and control procedures.
True or False: A cash distribution of earnings by a corporation to its stockholders is called a
CASH DIVIDEND. The 3 conditions that a corporation must meet to pay a cash dividend are:
sufficient retained earnings, sufficient cash, and formal action by the board of directors. -
ANSWERS-True
Accounting: Factors in computing depreciation are? - ANSWERS-Initial cost + residual value =
depreciable
, Accounting: The statement of cash flows reports a firm's major cash inflows and outflows for a
period. It provides useful information about a company's ability to do the following?? -
ANSWERS-Meet its financial obligations, generate cash from operations, and maintain and
expand its operating capacity
Accounting: True or False: Notes receivables are amounts that customers owe for which a
formal, written instrument of credit has been issued. If longer than a year it is considered an
investment. - ANSWERS-True
Accounting: The excess of current assets of a business over its current liabilities is called? -
ANSWERS-Working capital
Accounting: What 2 categories are considered under period costs? - ANSWERS-selling expenses
and administrative expenses
Accounting: The effect of a difference in the number of units sold, assuming no charge in unit
sales price or unit cost is... - ANSWERS-Quantity factor
Accounting: A cost that will not be affected by later decisions is termed an - ANSWERS-Sunk
Cost
Accounting: The unfavorable volume variance may be due to all but the following facts... -
ANSWERS-Unexpected increases in the cost of utilities
Accounting: What budget allows for adjustments in activity levels? - ANSWERS-Flexible budget
Accounting: A budget that summarizes future plans for the acquisition of fixed assets is the... -
ANSWERS-Capital expenditures budget
