ETS BUSINESS EXAM STUDY GUIDE LATEST 2026 UPDATED QUESTIONS
AND VERIFIED 100% SOLUTIONS (2026/2027) |A+ GRADED
|GUARANTEED PASS
Accounting: What is a general explanation of what the contribution margin is? - Answers -The
difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months are generally planned? - Answers -
12 months
Accounting: Which of the following is not one of the weaknesses of standard costing - Answers -
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) - Answers -Product cost concept, total cost concept, and variable cost concept
Accounting: What costs should be considered when making non-routine decisions? (3) -
Answers -The price of material, Factory overhead costs, and the price of labor
Accounting: Total product/ units produced and sold equals?? - Answers -Product Cost per Unit
Accounting: Which report is the connecting link between the income statement and the balance
sheet? - Answers -Cash flow statement
1|Page
,The net cash flow from operating activities normally differs from the amount of net income for
the period. - Answers -True
Accounting: Expense accounts would have a balance on which side? - Answers -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... - Answers -Corporation
Accounting: A debt may slightly - Answers -Increase in an asset account
Accounting: What would be classified as a current asset on the balance sheet - Answers -
Accounts receivable
Accounting: What are the elements of internal control? (3) - Answers -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. -
Answers -True
2|Page
, Accounting: Factors in computing depreciation are? - Answers -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?? - Answers
-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. - Answers -True
Accounting: The excess of current assets of a business over its current liabilities is called? -
Answers -Working capital
Accounting: What 2 categories are considered under period costs? - Answers -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... - Answers -Quantity factor
Accounting: A cost that will not be affected by later decisions is termed an - Answers -Sunk Cost
3|Page
AND VERIFIED 100% SOLUTIONS (2026/2027) |A+ GRADED
|GUARANTEED PASS
Accounting: What is a general explanation of what the contribution margin is? - Answers -The
difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months are generally planned? - Answers -
12 months
Accounting: Which of the following is not one of the weaknesses of standard costing - Answers -
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) - Answers -Product cost concept, total cost concept, and variable cost concept
Accounting: What costs should be considered when making non-routine decisions? (3) -
Answers -The price of material, Factory overhead costs, and the price of labor
Accounting: Total product/ units produced and sold equals?? - Answers -Product Cost per Unit
Accounting: Which report is the connecting link between the income statement and the balance
sheet? - Answers -Cash flow statement
1|Page
,The net cash flow from operating activities normally differs from the amount of net income for
the period. - Answers -True
Accounting: Expense accounts would have a balance on which side? - Answers -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... - Answers -Corporation
Accounting: A debt may slightly - Answers -Increase in an asset account
Accounting: What would be classified as a current asset on the balance sheet - Answers -
Accounts receivable
Accounting: What are the elements of internal control? (3) - Answers -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. -
Answers -True
2|Page
, Accounting: Factors in computing depreciation are? - Answers -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?? - Answers
-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. - Answers -True
Accounting: The excess of current assets of a business over its current liabilities is called? -
Answers -Working capital
Accounting: What 2 categories are considered under period costs? - Answers -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... - Answers -Quantity factor
Accounting: A cost that will not be affected by later decisions is termed an - Answers -Sunk Cost
3|Page
