ETS Business Exam Study Guide Questions & Answers Already Graded A+

Accounting: What costs should be considered when making non-routine decisions? (3) - Answer-The price of material, Factory overhead costs, and the price of labor Accounting: Total product/ units produced and sold equals?? - Answer-Product Cost per Unit Accounting: What is a general explanation of what the contribution margin is? - Answer-The difference between variable costs subtracted from sales Accounting: In a continuous budget plan how many months are generally planned? - Answer-12 months Accounting: Which of the following is not one of the weaknesses of standard costing - Answer-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) - Answer-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? - Answer-Cash flow statement The net cash flow from operating activities normally differs from the amount of net income for the period. - Answer-True Accounting: Expense accounts would have a balance on which side? - Answer-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... - Answer-Corporation Accounting: A debt may slightly - Answer-Increase in an asset accountAccounting: What would be classified as a current asset on the balance sheet - Answer-Accounts receivable Accounting: What are the elements of internal control? (3) - Answer-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. - Answer-True Accounting: Factors in computing depreciation are? - Answer-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?? - Answer-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. - Answer-True Accounting: The excess of current assets of a business over its current liabilities is called? - AnswerWorking capital Accounting: What 2 categories are considered under period costs? - Answer-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... - Answer-Quantity factor