Business Major Field Test [ACTUAL EXAM] LATEST VERSION
[QUESTIONS AND ANSWERS] WITH PRACTICE EXAM DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST UPDATE 2025 GRADED
A
Accounting: What is a general explanation of what the contribution margin is? -
CORRECT ANSWER The difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months are generally planned? -
CORRECT ANSWER 12 months
Accounting: Which of the following is not one of the weaknesses of standard costing -
CORRECT 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) - CORRECT 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? - CORRECT ANSWER Cash flow statement
The net cash flow from operating activities normally differs from the amount of net
income for the period. - CORRECT ANSWER True
Accounting: Expense accounts would have a balance on which side? - CORRECT
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... - CORRECT ANSWER
Corporation
Accounting: A debt may slightly - CORRECT ANSWER Increase in an asset account
Accounting: What would be classified as a current asset on the balance sheet -
CORRECT ANSWER Accounts receivable
Accounting: What are the elements of internal control? (3) - CORRECT 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. - CORRECT ANSWER True
,Accounting: Factors in computing depreciation are? - CORRECT 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?? - CORRECT 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. - CORRECT ANSWER True
Accounting: The excess of current assets of a business over its current liabilities is
called? - CORRECT ANSWER Working capital
Accounting: What 2 categories are considered under period costs? - CORRECT
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... - CORRECT ANSWER Quantity factor
Accounting: A cost that will not be affected by later decisions is termed an - CORRECT
ANSWER Sunk Cost
Accounting: The unfavorable volume variance may be due to all but the following facts...
- CORRECT ANSWER Unexpected increases in the cost of utilities
Accounting: What budget allows for adjustments in activity levels? - CORRECT
ANSWER Flexible budget
Accounting: A budget that summarizes future plans for the acquisition of fixed assets is
the... - CORRECT ANSWER Capital expenditures budget
Accounting: What are the standard framework of guidelines for financial accounting
used in any given jurisdiction, also known as accounting standards?? - CORRECT
ANSWER GAAP
Economics: What occurs when the price level rises? - CORRECT ANSWER People
need to hold more money, so interest rates rise, making firms borrow and invest less
Economics: The federal government enacted regulation in the 1960's requiring people
to wear seatbelt in their cars. All of the following resulted from this regulation, EXCEPT:
- CORRECT ANSWER Fewer pedestrians were killed in car accidents.
,Economics: Which of the following is true regarding the production possibilities frontier
model of the economy? - CORRECT ANSWER Any point along the PPF represents
an efficient level of production.
Economics: If the price in a market happens to be above equilibrium, there will be a
_____ in the market, and the price will tend to _____. - CORRECT ANSWER
Surplus, drop
Economics: The price elasticity of demand tends to be more elastic... - CORRECT
ANSWER At points further up and to the left along the demand curve
Economics: If a tax imposed on a good and the incidence of the tax ends up falling
more heavily on the buyers than on the sellers, this will be because... - CORRECT
ANSWER Demand is less elastic than supply for that good
Economics: If the quantity traded in a market is less than the equilibrium quantity... -
CORRECT ANSWER The value to consumers for additional units is greater than the
cost to sellers of producing those units.
Economics: A given tax will cause a bigger deadweight loss if demand and supply are...
- CORRECT ANSWER Elastic
Economics: What is a statement is true regarding international trade? - CORRECT
ANSWER For the importing country, the gains from international trade outweigh the
losses.
Economics: What statement is true regarding the revenues of a firm? - CORRECT
ANSWER The marginal revenue and the average revenue are equal to the price
Economics: Suppose the price of fish increases, so households now buy less fish and
more chicken. This will cause the... - CORRECT ANSWER CPI to measure more
inflation than there really is
Economics: The unemployment that results because it takes time for workers to search
for the jobs that best suit their tastes and skills is called? - CORRECT ANSWER
Frictional unemployment
Economics: What occurs when the Fed reduces the reserve requirement? - CORRECT
ANSWER The money multiplier gets bigger
Economics: In a housing bust what would an economist expect the price of homes to
do? - CORRECT ANSWER Make prices go down because of excess supply
Economics: What does balance of payment (BOP) mean? - CORRECT ANSWER
The method countries use to monitor all international monetary transactions at a specific
period of time.
, Economics: What is an example events would decrease the supply of money? -
CORRECT ANSWER The banks increasing their amount of excess reserve
Economics: What is money? - CORRECT ANSWER A store of value and a medium
of exchange
Economics: What market types describes most modern economics? - CORRECT
ANSWER Mixed economy
Economics: Rational people make decisions on the margins. Which statement would
NOT result in a purchase of the product being analyzed - CORRECT ANSWER MC >
MB
Economics: How does the federal reserve control the money supply? - CORRECT
ANSWER Prints more as needed
Economics: Tariffs generate tax revenue for the firms that hold an import license -
CORRECT ANSWER False
Economics: What 2 terms are used to describe the aggregate supply curve and how it is
shaped? - CORRECT ANSWER Long run and short run
Economics: If the price of a good is artificially set below the equilibrium price, what does
this create? - CORRECT ANSWER Shortage of goods.
Economics: What is the name of unwanted side effects of the production of goods? -
CORRECT ANSWER Negative externality
Economics: The gains from specialization and trade are based on comparative
advantage - CORRECT ANSWER True
Finance: The more frequent the compounding, the higher the future value, other things
being equal - CORRECT ANSWER True
Finance: For a given amount, the lower the discount rate, the less the present value -
CORRECT ANSWER False
Finance: Under which of the following conditions will a future value calculated with
simple interest exceed a future value calculated with compound interest at the same
rate? - CORRECT ANSWER This is not possible with positive interest rates
Finance: A level stream of cash payments that continues indefinitely is known as a
perpetuity; one that continues for a limited number of years is called an annuity. What
type of statement is this? - CORRECT ANSWER Regarding present and future
values of streams of cash payments
[QUESTIONS AND ANSWERS] WITH PRACTICE EXAM DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST UPDATE 2025 GRADED
A
Accounting: What is a general explanation of what the contribution margin is? -
CORRECT ANSWER The difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months are generally planned? -
CORRECT ANSWER 12 months
Accounting: Which of the following is not one of the weaknesses of standard costing -
CORRECT 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) - CORRECT 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? - CORRECT ANSWER Cash flow statement
The net cash flow from operating activities normally differs from the amount of net
income for the period. - CORRECT ANSWER True
Accounting: Expense accounts would have a balance on which side? - CORRECT
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... - CORRECT ANSWER
Corporation
Accounting: A debt may slightly - CORRECT ANSWER Increase in an asset account
Accounting: What would be classified as a current asset on the balance sheet -
CORRECT ANSWER Accounts receivable
Accounting: What are the elements of internal control? (3) - CORRECT 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. - CORRECT ANSWER True
,Accounting: Factors in computing depreciation are? - CORRECT 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?? - CORRECT 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. - CORRECT ANSWER True
Accounting: The excess of current assets of a business over its current liabilities is
called? - CORRECT ANSWER Working capital
Accounting: What 2 categories are considered under period costs? - CORRECT
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... - CORRECT ANSWER Quantity factor
Accounting: A cost that will not be affected by later decisions is termed an - CORRECT
ANSWER Sunk Cost
Accounting: The unfavorable volume variance may be due to all but the following facts...
- CORRECT ANSWER Unexpected increases in the cost of utilities
Accounting: What budget allows for adjustments in activity levels? - CORRECT
ANSWER Flexible budget
Accounting: A budget that summarizes future plans for the acquisition of fixed assets is
the... - CORRECT ANSWER Capital expenditures budget
Accounting: What are the standard framework of guidelines for financial accounting
used in any given jurisdiction, also known as accounting standards?? - CORRECT
ANSWER GAAP
Economics: What occurs when the price level rises? - CORRECT ANSWER People
need to hold more money, so interest rates rise, making firms borrow and invest less
Economics: The federal government enacted regulation in the 1960's requiring people
to wear seatbelt in their cars. All of the following resulted from this regulation, EXCEPT:
- CORRECT ANSWER Fewer pedestrians were killed in car accidents.
,Economics: Which of the following is true regarding the production possibilities frontier
model of the economy? - CORRECT ANSWER Any point along the PPF represents
an efficient level of production.
Economics: If the price in a market happens to be above equilibrium, there will be a
_____ in the market, and the price will tend to _____. - CORRECT ANSWER
Surplus, drop
Economics: The price elasticity of demand tends to be more elastic... - CORRECT
ANSWER At points further up and to the left along the demand curve
Economics: If a tax imposed on a good and the incidence of the tax ends up falling
more heavily on the buyers than on the sellers, this will be because... - CORRECT
ANSWER Demand is less elastic than supply for that good
Economics: If the quantity traded in a market is less than the equilibrium quantity... -
CORRECT ANSWER The value to consumers for additional units is greater than the
cost to sellers of producing those units.
Economics: A given tax will cause a bigger deadweight loss if demand and supply are...
- CORRECT ANSWER Elastic
Economics: What is a statement is true regarding international trade? - CORRECT
ANSWER For the importing country, the gains from international trade outweigh the
losses.
Economics: What statement is true regarding the revenues of a firm? - CORRECT
ANSWER The marginal revenue and the average revenue are equal to the price
Economics: Suppose the price of fish increases, so households now buy less fish and
more chicken. This will cause the... - CORRECT ANSWER CPI to measure more
inflation than there really is
Economics: The unemployment that results because it takes time for workers to search
for the jobs that best suit their tastes and skills is called? - CORRECT ANSWER
Frictional unemployment
Economics: What occurs when the Fed reduces the reserve requirement? - CORRECT
ANSWER The money multiplier gets bigger
Economics: In a housing bust what would an economist expect the price of homes to
do? - CORRECT ANSWER Make prices go down because of excess supply
Economics: What does balance of payment (BOP) mean? - CORRECT ANSWER
The method countries use to monitor all international monetary transactions at a specific
period of time.
, Economics: What is an example events would decrease the supply of money? -
CORRECT ANSWER The banks increasing their amount of excess reserve
Economics: What is money? - CORRECT ANSWER A store of value and a medium
of exchange
Economics: What market types describes most modern economics? - CORRECT
ANSWER Mixed economy
Economics: Rational people make decisions on the margins. Which statement would
NOT result in a purchase of the product being analyzed - CORRECT ANSWER MC >
MB
Economics: How does the federal reserve control the money supply? - CORRECT
ANSWER Prints more as needed
Economics: Tariffs generate tax revenue for the firms that hold an import license -
CORRECT ANSWER False
Economics: What 2 terms are used to describe the aggregate supply curve and how it is
shaped? - CORRECT ANSWER Long run and short run
Economics: If the price of a good is artificially set below the equilibrium price, what does
this create? - CORRECT ANSWER Shortage of goods.
Economics: What is the name of unwanted side effects of the production of goods? -
CORRECT ANSWER Negative externality
Economics: The gains from specialization and trade are based on comparative
advantage - CORRECT ANSWER True
Finance: The more frequent the compounding, the higher the future value, other things
being equal - CORRECT ANSWER True
Finance: For a given amount, the lower the discount rate, the less the present value -
CORRECT ANSWER False
Finance: Under which of the following conditions will a future value calculated with
simple interest exceed a future value calculated with compound interest at the same
rate? - CORRECT ANSWER This is not possible with positive interest rates
Finance: A level stream of cash payments that continues indefinitely is known as a
perpetuity; one that continues for a limited number of years is called an annuity. What
type of statement is this? - CORRECT ANSWER Regarding present and future
values of streams of cash payments
