ETS MFT BUSINESS EXAM UPDATED
QUESTIONS WITH CORRECT
ANSWERS
◉ Accounting: Total product/ units produced and sold equals??
Answer: Product Cost per Unit
◉ Accounting: What is a general explanation of what the
contribution margin is? Answer: The difference between variable
costs subtracted from sales
◉ Accounting: In a continuous budget plan how many months are
generally planned? Answer: 12 months
◉ Accounting: Which of the following is not one of the weaknesses
of standard costing 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) 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? Answer: Cash flow
statement
,◉ The net cash flow from operating activities normally differs from
the amount of net income for the period. Answer: True
◉ Accounting: Expense accounts would have a balance on which
side? 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... Answer: Corporation
◉ Accounting: A debt may slightly Answer: Increase in an asset
account
◉ Accounting: What would be classified as a current asset on the
balance sheet Answer: Accounts receivable
◉ Accounting: What are the elements of internal control? (3)
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. Answer: True
, ◉ Accounting: Factors in computing depreciation are? 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?? 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.
Answer: True
◉ Accounting: The excess of current assets of a business over its
current liabilities is called? Answer: Working capital
◉ Accounting: What 2 categories are considered under period costs?
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... Answer:
Quantity factor
QUESTIONS WITH CORRECT
ANSWERS
◉ Accounting: Total product/ units produced and sold equals??
Answer: Product Cost per Unit
◉ Accounting: What is a general explanation of what the
contribution margin is? Answer: The difference between variable
costs subtracted from sales
◉ Accounting: In a continuous budget plan how many months are
generally planned? Answer: 12 months
◉ Accounting: Which of the following is not one of the weaknesses
of standard costing 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) 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? Answer: Cash flow
statement
,◉ The net cash flow from operating activities normally differs from
the amount of net income for the period. Answer: True
◉ Accounting: Expense accounts would have a balance on which
side? 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... Answer: Corporation
◉ Accounting: A debt may slightly Answer: Increase in an asset
account
◉ Accounting: What would be classified as a current asset on the
balance sheet Answer: Accounts receivable
◉ Accounting: What are the elements of internal control? (3)
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. Answer: True
, ◉ Accounting: Factors in computing depreciation are? 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?? 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.
Answer: True
◉ Accounting: The excess of current assets of a business over its
current liabilities is called? Answer: Working capital
◉ Accounting: What 2 categories are considered under period costs?
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... Answer:
Quantity factor
