MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
Balance Sheet - CORRECT ANSWER a financial statement that reports a company's
assets, liabilities, and shareholder equity at a specific point in time; Assets = Liabilities +
Shareholder's Equity
Income Statement - CORRECT ANSWER AKA profit and loss statement; primarily
focuses on the company's revenues and expenses during a particular period;
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Statement of Retained Earnings - CORRECT ANSWER AKA Statement of Equity;
outlines the changes in retained earnings for a company over a specified period;
Retained Earnings - CORRECT ANSWER profits held by a company in reserve in
order to invest in future projects rather than distribute as dividends to shareholders
Statement of Cash Flows - CORRECT ANSWER summarizes the amount of cash and
cash equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - CORRECT ANSWER $$$ that goes in/out of a business
profit - CORRECT ANSWER $$$ leftover after Revenues - Expenses
cash from operating activities - CORRECT ANSWER receipts from sales of
goods/services, interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
, MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
cash from investing activities - CORRECT ANSWER changes in equipment, assets,
or investments
cash from financing activities - CORRECT ANSWER cash from investors/banks,
dividends, repayment of debt,
Direct Cash Flow Method - CORRECT ANSWER determines changes in cash
receipts and payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - CORRECT ANSWER takes the net income generated
in a period and adds or subtracts changes in the asset and liability accounts to determine
the implied cash flow
liquidity - CORRECT ANSWER the ease with which an asset, or security, can be
converted into ready cash without affecting its market price; cash is the most liquid of
assets
Accrual Basis Accounting - CORRECT ANSWER revenue or expenses are recorded
when a transaction occurs; follows the matching principle, which says that revenues and
expenses should be recognized in the same period
Cash Accounting - CORRECT ANSWER recognizes transactions only when
payment is exchanged.
capital stock - CORRECT ANSWER amount of common and preferred shares that a
company is authorized to issue, recorded on the balance sheet under shareholders' equity;
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
Balance Sheet - CORRECT ANSWER a financial statement that reports a company's
assets, liabilities, and shareholder equity at a specific point in time; Assets = Liabilities +
Shareholder's Equity
Income Statement - CORRECT ANSWER AKA profit and loss statement; primarily
focuses on the company's revenues and expenses during a particular period;
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Statement of Retained Earnings - CORRECT ANSWER AKA Statement of Equity;
outlines the changes in retained earnings for a company over a specified period;
Retained Earnings - CORRECT ANSWER profits held by a company in reserve in
order to invest in future projects rather than distribute as dividends to shareholders
Statement of Cash Flows - CORRECT ANSWER summarizes the amount of cash and
cash equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - CORRECT ANSWER $$$ that goes in/out of a business
profit - CORRECT ANSWER $$$ leftover after Revenues - Expenses
cash from operating activities - CORRECT ANSWER receipts from sales of
goods/services, interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
, MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
cash from investing activities - CORRECT ANSWER changes in equipment, assets,
or investments
cash from financing activities - CORRECT ANSWER cash from investors/banks,
dividends, repayment of debt,
Direct Cash Flow Method - CORRECT ANSWER determines changes in cash
receipts and payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - CORRECT ANSWER takes the net income generated
in a period and adds or subtracts changes in the asset and liability accounts to determine
the implied cash flow
liquidity - CORRECT ANSWER the ease with which an asset, or security, can be
converted into ready cash without affecting its market price; cash is the most liquid of
assets
Accrual Basis Accounting - CORRECT ANSWER revenue or expenses are recorded
when a transaction occurs; follows the matching principle, which says that revenues and
expenses should be recognized in the same period
Cash Accounting - CORRECT ANSWER recognizes transactions only when
payment is exchanged.
capital stock - CORRECT ANSWER amount of common and preferred shares that a
company is authorized to issue, recorded on the balance sheet under shareholders' equity;
