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ETS MFT Business Exam Version 2 Newest 2025
Complete All Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New
Version!!
A firm that would like to know whether it has enough cash to
meet its bills would be most likely to use which category of
financial ratio?
a. liquidity
b. leverage
c. efficiency
d. profitability - ANSWER-a. liquidity
(availability of liquid assets; i.e. cash)
In a period of rising prices, which inventory valuation method
would generally yield both the lowest ending inventory value
and net income figure?
a. FIFO (First In, First Out)
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b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-b. LIFO
(method used to account for inventory. cost of the most recent
products purchased (or produced) are the first to be expensed as
cost of goods sold (COGS), which means the lower cost of older
products will be reported as inventory)
___________ is an asset-management and valuation method in
which assets produced or acquired first are sold, used, or
disposed of first. Also, provides a better indication of the value
of ending inventory (on the balance sheet), but it also increases
net income because inventory that might be several years old is
used to value COGS. Increasing net income sounds good, but it
can increase the taxes that a company must pay.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-a. FIFO
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____________not a good indicator of ending inventory value
because it may understate the value of inventory. __________
results in lower net income (and taxes) because COGS is higher.
However, there are fewer inventory write-downs under
_________ during inflation.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Average Costing/Weighted Average
d. Standard Cost - ANSWER-b. LIFO
________________ assigns a cost to inventory items based on
the total cost of goods purchased or produced in a period divided
by the total number of items purchased or produced.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Average Costing/Weighted Average
d. Standard Cost - ANSWER-C. Average Costing/Weighted
Average
ETS MFT Business Exam Version 2 Newest 2025
Complete All Questions And Correct Detailed Answers
(Verified Answers) |Already Graded A+||Brand New
Version!!
A firm that would like to know whether it has enough cash to
meet its bills would be most likely to use which category of
financial ratio?
a. liquidity
b. leverage
c. efficiency
d. profitability - ANSWER-a. liquidity
(availability of liquid assets; i.e. cash)
In a period of rising prices, which inventory valuation method
would generally yield both the lowest ending inventory value
and net income figure?
a. FIFO (First In, First Out)
,2|Page
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-b. LIFO
(method used to account for inventory. cost of the most recent
products purchased (or produced) are the first to be expensed as
cost of goods sold (COGS), which means the lower cost of older
products will be reported as inventory)
___________ is an asset-management and valuation method in
which assets produced or acquired first are sold, used, or
disposed of first. Also, provides a better indication of the value
of ending inventory (on the balance sheet), but it also increases
net income because inventory that might be several years old is
used to value COGS. Increasing net income sounds good, but it
can increase the taxes that a company must pay.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Weighted Average
d. Standard Cost - ANSWER-a. FIFO
, 3|Page
____________not a good indicator of ending inventory value
because it may understate the value of inventory. __________
results in lower net income (and taxes) because COGS is higher.
However, there are fewer inventory write-downs under
_________ during inflation.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Average Costing/Weighted Average
d. Standard Cost - ANSWER-b. LIFO
________________ assigns a cost to inventory items based on
the total cost of goods purchased or produced in a period divided
by the total number of items purchased or produced.
a. FIFO (First In, First Out)
b. LIFO (Last In, First Out)
c. Average Costing/Weighted Average
d. Standard Cost - ANSWER-C. Average Costing/Weighted
Average
