UPDATED 2024/2025 MBA ETS MAJOR FIELD TEST
QUESTIONS WITH CORRECT ANSWERS ALREADY
PASSED AND VERIFIED
Balance Sheet - (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 - (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 - (ANSWER)AKA Statement of Equity; outlines the
changes in retained earnings for a company over a specified period;
Retained Earnings - (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 - (ANSWER)summarizes the amount of cash and cash
equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - (ANSWER)$$$ that goes in/out of a business
profit - (ANSWER)$$$ leftover after Revenues - Expenses
, cash from operating activities - (ANSWER)receipts from sales of goods/services,
interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
cash from investing activities - (ANSWER)changes in equipment, assets, or
investments
cash from financing activities - (ANSWER)cash from investors/banks, dividends,
repayment of debt,
Direct Cash Flow Method - (ANSWER)determines changes in cash receipts and
payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - (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 - (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 - (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
QUESTIONS WITH CORRECT ANSWERS ALREADY
PASSED AND VERIFIED
Balance Sheet - (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 - (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 - (ANSWER)AKA Statement of Equity; outlines the
changes in retained earnings for a company over a specified period;
Retained Earnings - (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 - (ANSWER)summarizes the amount of cash and cash
equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - (ANSWER)$$$ that goes in/out of a business
profit - (ANSWER)$$$ leftover after Revenues - Expenses
, cash from operating activities - (ANSWER)receipts from sales of goods/services,
interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
cash from investing activities - (ANSWER)changes in equipment, assets, or
investments
cash from financing activities - (ANSWER)cash from investors/banks, dividends,
repayment of debt,
Direct Cash Flow Method - (ANSWER)determines changes in cash receipts and
payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - (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 - (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 - (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
