1|Page
ETS MFT Business Exam Version 3 Newest 2026/2027
Complete All Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Just Out!!!
Which of the following is NOT an element of internal control?
a) monitoring
b) control procedures
c) control environment
d) compliance with laws and regulations - ANSWER-d)
compliance with laws and regulations
A cash distribution of earnings by a corporation to its
stockholders is called a cash dividend. The three 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.
True or False - ANSWER-True
Factors in computing depreciation are
a) useful life + initial cost = depreciable costs
b) initial costs - residual value = depreciable costs
c) market value + residual value = depreciable costs
,2|Page
d) none of the above - ANSWER-b) initial costs - residual value =
depreciable costs
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;
a) generate cash from operations
b) meet its financial obligations
c) maintain and expand its operating capacity
d) all of the above - ANSWER-d) all of the above
Notes receivable are amounts that customers owe for which a
formal, written instrument of credit has been issued. If longer
than a year it is considered and investment.
True or False - ANSWER-True
The excess of current assets of a business over its current
liabilities is called
a) quick ratio
b) inventory turnover
c) stockholder's equity
d) working capital - ANSWER-d) working capital
,3|Page
What two categories are considered under Period Costs?
a) materials inventory and product costs
b) selling expenses and administrative expenses
c) work in process inventory and direct labor costs
d) direct labor costs and factory overhead - ANSWER-b) selling
expenses and administrative expenses
The effect of a difference in the number of units sold, assuming
no change in unit sales price or unit cost is
a) quantity factor
b) unit cost factor
c) contribution margin analysis
d) product pricing - ANSWER-a) quantity factor
A cost that will not be affected by later decisions is termed a(n)
a) differential cost
b) replacement cost
c) sunk cost
d) historical cost - ANSWER-c) sunk cost
, 4|Page
The unfavorable volume variance may be due to all but the
following factors;
a) unexpected increases in the cost of utilities
b) failure to maintain an even flow of work
c) failure to obtain enough sales orders
d) machine breakdowns - ANSWER-a) unexpected increases in
the cost of utilities
Which of the following budgets allow for adjustments in activity
levels?
a) static budget
b) flexible budget
c) continuous budget
d) zero based budget - ANSWER-b) flexible budget
A budget that summarizes future plans for the acquisition of
fixed assets is the
a) production budget
b) sales budget
c) direct materials purchases budget
d) capital expenditures budget - ANSWER-d) capital
expenditures budget
ETS MFT Business Exam Version 3 Newest 2026/2027
Complete All Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Just Out!!!
Which of the following is NOT an element of internal control?
a) monitoring
b) control procedures
c) control environment
d) compliance with laws and regulations - ANSWER-d)
compliance with laws and regulations
A cash distribution of earnings by a corporation to its
stockholders is called a cash dividend. The three 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.
True or False - ANSWER-True
Factors in computing depreciation are
a) useful life + initial cost = depreciable costs
b) initial costs - residual value = depreciable costs
c) market value + residual value = depreciable costs
,2|Page
d) none of the above - ANSWER-b) initial costs - residual value =
depreciable costs
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;
a) generate cash from operations
b) meet its financial obligations
c) maintain and expand its operating capacity
d) all of the above - ANSWER-d) all of the above
Notes receivable are amounts that customers owe for which a
formal, written instrument of credit has been issued. If longer
than a year it is considered and investment.
True or False - ANSWER-True
The excess of current assets of a business over its current
liabilities is called
a) quick ratio
b) inventory turnover
c) stockholder's equity
d) working capital - ANSWER-d) working capital
,3|Page
What two categories are considered under Period Costs?
a) materials inventory and product costs
b) selling expenses and administrative expenses
c) work in process inventory and direct labor costs
d) direct labor costs and factory overhead - ANSWER-b) selling
expenses and administrative expenses
The effect of a difference in the number of units sold, assuming
no change in unit sales price or unit cost is
a) quantity factor
b) unit cost factor
c) contribution margin analysis
d) product pricing - ANSWER-a) quantity factor
A cost that will not be affected by later decisions is termed a(n)
a) differential cost
b) replacement cost
c) sunk cost
d) historical cost - ANSWER-c) sunk cost
, 4|Page
The unfavorable volume variance may be due to all but the
following factors;
a) unexpected increases in the cost of utilities
b) failure to maintain an even flow of work
c) failure to obtain enough sales orders
d) machine breakdowns - ANSWER-a) unexpected increases in
the cost of utilities
Which of the following budgets allow for adjustments in activity
levels?
a) static budget
b) flexible budget
c) continuous budget
d) zero based budget - ANSWER-b) flexible budget
A budget that summarizes future plans for the acquisition of
fixed assets is the
a) production budget
b) sales budget
c) direct materials purchases budget
d) capital expenditures budget - ANSWER-d) capital
expenditures budget
