ETS BUSINESS EXAM STUDY GUIDE
Accounting:,What,costs,should,be,considered,when,making,non-routine,decisions?,
(3),-,ans-✔✔The,price,of,material,,Factory,overhead,costs,,and,the,price,of,labor
Accounting:,Total,product/,units,produced,and,sold,equals??,-,ans-
✔✔Product,Cost,per,Unit
Accounting:,What,is,a,general,explanation,of,what,the,contribution,margin,is?,-,ans-
✔✔The,difference,between,variable,costs,subtracted,from,sales
Accounting:,In,a,continuous,budget,plan,how,many,months,are,generally,planned?,-,ans-
✔✔12,months
Accounting:,Which,of,the,following,is,not,one,of,the,weaknesses,of,standard,costing,-,ans-
✔✔It,makes,accounting,for,price,increases,more,accurate
Accounting:,What,are,the,potential,ways,to,find,the,price,of,what,a,produced,products,shou
ld,cost?,(3),-,ans-✔✔Product,cost,concept,,total,cost,concept,,and,variable,cost,concept
Accounting:,Which,report,is,the,connecting,link,between,the,income,statement,and,the,bal
ance,sheet?,-,ans-✔✔Cash,flow,statement
The,net,cash,flow,from,operating,activities,normally,differs,from,the,amount,of,net,income,f
or,the,period.,-,ans-✔✔True
Accounting:,Expense,accounts,would,have,a,balance,on,which,side?,-,ans-✔✔Left,side
Accounting:,A,profit-
making,business,operating,as,a,separated,legal,entity,and,in,which,ownership,is,divided,in
to,shares,of,stock,is,known,as,a...,-,ans-✔✔Corporation
Accounting:,A,debt,may,slightly,-,ans-✔✔Increase,in,an,asset,account
Accounting:,What,would,be,classified,as,a,current,asset,on,the,balance,sheet,-,ans-
✔✔Accounts,receivable
Accounting:,What,are,the,elements,of,internal,control?,(3),-,ans-
✔✔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,ar
e:,sufficient,retained,earnings,,sufficient,cash,,and,formal,action,by,the,board,of,directors.,-
,ans-✔✔True
Accounting:,Factors,in,computing,depreciation,are?,-,ans-✔✔Initial,cost,
+,residual,value,=,depreciable
Accounting:,The,statement,of,cash,flows,reports,a,firm's,major,cash,inflows,and,outflows,f
or,a,period.,It,provides,useful,information,about,a,company's,ability,to,do,the,following??,-,
ans-
✔✔Meet,its,financial,obligations,,generate,cash,from,operations,,and,maintain,and,expan
d,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.,-,ans-✔✔True
Accounting:,The,excess,of,current,assets,of,a,business,over,its,current,liabilities,is,called?,
-,ans-✔✔Working,capital
Accounting:,What,2,categories,are,considered,under,period,costs?,-,ans-
✔✔selling,expenses,and,administrative,expenses
Accounting:,The,effect,of,a,difference,in,the,number,of,units,sold,,assuming,no,charge,in,u
nit,sales,price,or,unit,cost,is...,-,ans-✔✔Quantity,factor
Accounting:,A,cost,that,will,not,be,affected,by,later,decisions,is,termed,an,-,ans-
✔✔Sunk,Cost
Accounting:,The,unfavorable,volume,variance,may,be,due,to,all,but,the,following,facts...,-,
ans-✔✔Unexpected,increases,in,the,cost,of,utilities
Accounting:,What,budget,allows,for,adjustments,in,activity,levels?,-,ans-
✔✔Flexible,budget
Accounting:,A,budget,that,summarizes,future,plans,for,the,acquisition,of,fixed,assets,is,the
...,-,ans-✔✔Capital,expenditures,budget
Accounting:,What,are,the,standard,framework,of,guidelines,for,financial,accounting,used,i
n,any,given,jurisdiction,,also,known,as,accounting,standards??,-,ans-✔✔GAAP
Economics:,What,occurs,when,the,price,level,rises?,-,ans-
✔✔People,need,to,hold,more,money,,so,interest,rates,rise,,making,firms,borrow,and,inves
t,less
Accounting:,What,costs,should,be,considered,when,making,non-routine,decisions?,
(3),-,ans-✔✔The,price,of,material,,Factory,overhead,costs,,and,the,price,of,labor
Accounting:,Total,product/,units,produced,and,sold,equals??,-,ans-
✔✔Product,Cost,per,Unit
Accounting:,What,is,a,general,explanation,of,what,the,contribution,margin,is?,-,ans-
✔✔The,difference,between,variable,costs,subtracted,from,sales
Accounting:,In,a,continuous,budget,plan,how,many,months,are,generally,planned?,-,ans-
✔✔12,months
Accounting:,Which,of,the,following,is,not,one,of,the,weaknesses,of,standard,costing,-,ans-
✔✔It,makes,accounting,for,price,increases,more,accurate
Accounting:,What,are,the,potential,ways,to,find,the,price,of,what,a,produced,products,shou
ld,cost?,(3),-,ans-✔✔Product,cost,concept,,total,cost,concept,,and,variable,cost,concept
Accounting:,Which,report,is,the,connecting,link,between,the,income,statement,and,the,bal
ance,sheet?,-,ans-✔✔Cash,flow,statement
The,net,cash,flow,from,operating,activities,normally,differs,from,the,amount,of,net,income,f
or,the,period.,-,ans-✔✔True
Accounting:,Expense,accounts,would,have,a,balance,on,which,side?,-,ans-✔✔Left,side
Accounting:,A,profit-
making,business,operating,as,a,separated,legal,entity,and,in,which,ownership,is,divided,in
to,shares,of,stock,is,known,as,a...,-,ans-✔✔Corporation
Accounting:,A,debt,may,slightly,-,ans-✔✔Increase,in,an,asset,account
Accounting:,What,would,be,classified,as,a,current,asset,on,the,balance,sheet,-,ans-
✔✔Accounts,receivable
Accounting:,What,are,the,elements,of,internal,control?,(3),-,ans-
✔✔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,ar
e:,sufficient,retained,earnings,,sufficient,cash,,and,formal,action,by,the,board,of,directors.,-
,ans-✔✔True
Accounting:,Factors,in,computing,depreciation,are?,-,ans-✔✔Initial,cost,
+,residual,value,=,depreciable
Accounting:,The,statement,of,cash,flows,reports,a,firm's,major,cash,inflows,and,outflows,f
or,a,period.,It,provides,useful,information,about,a,company's,ability,to,do,the,following??,-,
ans-
✔✔Meet,its,financial,obligations,,generate,cash,from,operations,,and,maintain,and,expan
d,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.,-,ans-✔✔True
Accounting:,The,excess,of,current,assets,of,a,business,over,its,current,liabilities,is,called?,
-,ans-✔✔Working,capital
Accounting:,What,2,categories,are,considered,under,period,costs?,-,ans-
✔✔selling,expenses,and,administrative,expenses
Accounting:,The,effect,of,a,difference,in,the,number,of,units,sold,,assuming,no,charge,in,u
nit,sales,price,or,unit,cost,is...,-,ans-✔✔Quantity,factor
Accounting:,A,cost,that,will,not,be,affected,by,later,decisions,is,termed,an,-,ans-
✔✔Sunk,Cost
Accounting:,The,unfavorable,volume,variance,may,be,due,to,all,but,the,following,facts...,-,
ans-✔✔Unexpected,increases,in,the,cost,of,utilities
Accounting:,What,budget,allows,for,adjustments,in,activity,levels?,-,ans-
✔✔Flexible,budget
Accounting:,A,budget,that,summarizes,future,plans,for,the,acquisition,of,fixed,assets,is,the
...,-,ans-✔✔Capital,expenditures,budget
Accounting:,What,are,the,standard,framework,of,guidelines,for,financial,accounting,used,i
n,any,given,jurisdiction,,also,known,as,accounting,standards??,-,ans-✔✔GAAP
Economics:,What,occurs,when,the,price,level,rises?,-,ans-
✔✔People,need,to,hold,more,money,,so,interest,rates,rise,,making,firms,borrow,and,inves
t,less
