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ETS MFT BUSINESS EXAM 2026
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
In the statement of cash flows, the section for cash flows from
operating activities will include which of the following?
(A) Dividends paid
(B) Issuance of common stock
(C) A decrease in accounts payable
(D) Purchase of a building financed entirely by a mortgage -
correct answer -C
All of the following are true regarding a seller's rights to reduce
legal liability in the sale of non-consumer goods EXCEPT:
(A) The seller can disclaim consequential
Damages if it is done clearly and conspicuously.
(B) The seller can limit the remedy available to the buyer if he or
she does so clearly and
Fairly.
(C) The seller can place reasonable conditions on the warranty
coverage and a shorter time limit of warranty coverage.
(D) The seller can disclaim all implied warranties by simply stating
that there are no implied warranties. - correct answer -D
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Which of the following should be shown net of tax on a
corporation's income statement?
(A) Discontinued operations
(B) Operating income
(C) Gross profit
(D) Gain on sale of delivery truck - correct answer -A
Net income $100,000;Depreciation expense $10,000;Net increase
in accounts: receivable $5,000;Net increase in accounts: payable
$3,000;On the basis of the information provided in the table above
for a corporation, the corporation's net cash flow from operating
activities for the current year is:
(A) $98,000
(B) $102,000
(C) $108,000
(D) $118,0008 - correct answer -C
Littleton, Inc., has fixed costs of $75,000 per month, variable
costs of $5 per unit, and a sales price per unit of $30. What is the
break-even quantity per month?
(A) 2,143
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(B) 2,500
(C) 3,000
(D) 15,000 - correct answer -C
Web 2.0 is best represented by which of the following
phenomena?
(A) Social networking sites
(B) Word processing
(C) Internet browsers
(D) Text messaging - correct answer -C
Are the business documents that companies use to report
The results of activities to various external user groups. - correct
answer -Financial Statements
Is an information system. It measures business activities,
processes date into reports (including financial statements) and
communicates results to
Decision makers. Accounting is the "language of business" -
correct answer -Accounting
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Provides information for decision makers outside the entity.
Investors
Creditors
Government agencies
And the public - correct answer -Financial Accounting
Provides information for internal users, management - correct
answer -Managerial Accounting
Is a single owner. - correct answer -proprietorship
Two or more parties are co-owners and each owner is a partner. -
correct answer -Partnership
One in which the business (not the owner) is liable for the
company's debt. - correct answer -Limited Liability Company
(LLC)
ETS MFT BUSINESS EXAM 2026
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
In the statement of cash flows, the section for cash flows from
operating activities will include which of the following?
(A) Dividends paid
(B) Issuance of common stock
(C) A decrease in accounts payable
(D) Purchase of a building financed entirely by a mortgage -
correct answer -C
All of the following are true regarding a seller's rights to reduce
legal liability in the sale of non-consumer goods EXCEPT:
(A) The seller can disclaim consequential
Damages if it is done clearly and conspicuously.
(B) The seller can limit the remedy available to the buyer if he or
she does so clearly and
Fairly.
(C) The seller can place reasonable conditions on the warranty
coverage and a shorter time limit of warranty coverage.
(D) The seller can disclaim all implied warranties by simply stating
that there are no implied warranties. - correct answer -D
, Page | 2
Which of the following should be shown net of tax on a
corporation's income statement?
(A) Discontinued operations
(B) Operating income
(C) Gross profit
(D) Gain on sale of delivery truck - correct answer -A
Net income $100,000;Depreciation expense $10,000;Net increase
in accounts: receivable $5,000;Net increase in accounts: payable
$3,000;On the basis of the information provided in the table above
for a corporation, the corporation's net cash flow from operating
activities for the current year is:
(A) $98,000
(B) $102,000
(C) $108,000
(D) $118,0008 - correct answer -C
Littleton, Inc., has fixed costs of $75,000 per month, variable
costs of $5 per unit, and a sales price per unit of $30. What is the
break-even quantity per month?
(A) 2,143
, Page | 3
(B) 2,500
(C) 3,000
(D) 15,000 - correct answer -C
Web 2.0 is best represented by which of the following
phenomena?
(A) Social networking sites
(B) Word processing
(C) Internet browsers
(D) Text messaging - correct answer -C
Are the business documents that companies use to report
The results of activities to various external user groups. - correct
answer -Financial Statements
Is an information system. It measures business activities,
processes date into reports (including financial statements) and
communicates results to
Decision makers. Accounting is the "language of business" -
correct answer -Accounting
, Page | 4
Provides information for decision makers outside the entity.
Investors
Creditors
Government agencies
And the public - correct answer -Financial Accounting
Provides information for internal users, management - correct
answer -Managerial Accounting
Is a single owner. - correct answer -proprietorship
Two or more parties are co-owners and each owner is a partner. -
correct answer -Partnership
One in which the business (not the owner) is liable for the
company's debt. - correct answer -Limited Liability Company
(LLC)
