MBA MFT COMPREHENSIVE EXAM 2026
FULL QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
●● Income Statement.
Answer: AKA profit and loss statement; primarily focuses on the
company's revenues and expenses during a particular period;
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
●● Statement of Retained Earnings.
Answer: AKA Statement of Equity; outlines the changes in retained
earnings for a company over a specified period;
●● Retained Earnings.
Answer: profits held by a company in reserve in order to invest in future
projects rather than distribute as dividends to shareholders
●● Statement of Cash Flows.
Answer: summarizes the amount of cash and cash equivalents entering
and leaving a company; includes operating, investing, and financing
activities
●● cash flow.
,Answer: $$$ that goes in/out of a business
●● profit.
Answer: $$$ leftover after Revenues - Expenses
●● cash from operating activities.
Answer: receipts from sales of goods/services, interest payments,
income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
●● cash from investing activities.
Answer: changes in equipment, assets, or investments
●● cash from financing activities.
Answer: cash from investors/banks, dividends, repayment of debt,
●● Direct Cash Flow Method.
Answer: determines changes in cash receipts and payments, which are
reported in the cash flow from the operations section.
●● Indirect Cash Flow Method.
, Answer: takes the net income generated in a period and adds or subtracts
changes in the asset and liability accounts to determine the implied cash
flow
●● liquidity.
Answer: the ease with which an asset, or security, can be converted into
ready cash without affecting its market price; cash is the most liquid of
assets
●● Accrual Basis Accounting.
Answer: revenue or expenses are recorded when a transaction occurs;
follows the matching principle, which says that revenues and expenses
should be recognized in the same period
●● Cash Accounting.
Answer: recognizes transactions only when payment is exchanged.
●● capital stock.
Answer: amount of common and preferred shares that a company is
authorized to issue, recorded on the balance sheet under shareholders'
equity;
amount of capital stock is the maximum amount of shares that a
company can ever have outstanding
FULL QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
●● Income Statement.
Answer: AKA profit and loss statement; primarily focuses on the
company's revenues and expenses during a particular period;
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
●● Statement of Retained Earnings.
Answer: AKA Statement of Equity; outlines the changes in retained
earnings for a company over a specified period;
●● Retained Earnings.
Answer: profits held by a company in reserve in order to invest in future
projects rather than distribute as dividends to shareholders
●● Statement of Cash Flows.
Answer: summarizes the amount of cash and cash equivalents entering
and leaving a company; includes operating, investing, and financing
activities
●● cash flow.
,Answer: $$$ that goes in/out of a business
●● profit.
Answer: $$$ leftover after Revenues - Expenses
●● cash from operating activities.
Answer: receipts from sales of goods/services, interest payments,
income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
●● cash from investing activities.
Answer: changes in equipment, assets, or investments
●● cash from financing activities.
Answer: cash from investors/banks, dividends, repayment of debt,
●● Direct Cash Flow Method.
Answer: determines changes in cash receipts and payments, which are
reported in the cash flow from the operations section.
●● Indirect Cash Flow Method.
, Answer: takes the net income generated in a period and adds or subtracts
changes in the asset and liability accounts to determine the implied cash
flow
●● liquidity.
Answer: the ease with which an asset, or security, can be converted into
ready cash without affecting its market price; cash is the most liquid of
assets
●● Accrual Basis Accounting.
Answer: revenue or expenses are recorded when a transaction occurs;
follows the matching principle, which says that revenues and expenses
should be recognized in the same period
●● Cash Accounting.
Answer: recognizes transactions only when payment is exchanged.
●● capital stock.
Answer: amount of common and preferred shares that a company is
authorized to issue, recorded on the balance sheet under shareholders'
equity;
amount of capital stock is the maximum amount of shares that a
company can ever have outstanding
