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ETS MFT BUSINESS EXAM LATEST VERSION
WITH 300 QUESTIONS AND CORRECT
RATIONALIZED SOLUTIONS JUST RELEASED
THIS YEAR (2026-2027)
ETS MFT BUSINESS EXAM — 300 RANDOMIZED PRACTICE QUESTIONS
SECTION 1: ACCOUNTING (Questions 1-60)
1. What is the accounting equation that forms the foundation of double-entry bookkeeping?
A) Assets = Liabilities + Owner's Equity
B) Assets + Liabilities = Owner's Equity
C) Revenue - Expenses = Net Income
D) Assets = Revenue - Expenses
Answer: A
The fundamental accounting equation states that assets equal liabilities plus owner's equity,
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representing the balance sheet identity where resources (assets) are financed by either debt
(liabilities) or ownership claims (equity).
2. A company sold merchandise for $230,000 cash and $310,000 on account. The cost of
merchandise sold was $212,000. What is the amount of gross profit?
A) $18,000
B) $98,000
C) $310,000
D) $328,000
Answer: D
Gross profit is calculated as net sales revenue minus cost of goods sold. Total sales revenue is
$230,000 + $310,000 = $540,000. Gross profit = $540,000 - $212,000 = $328,000.
3. The term "net working capital" refers to which of the following?
A) Inventories, receivables, and current notes and investments
B) Assets divided by liabilities
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C) Current assets less short-term liabilities
D) Net assets left over after subtracting cost of goods sold
Answer: C
Net working capital is the difference between current assets and current liabilities, representing
the liquidity available to fund day-to-day operations. It measures a company's short-term
financial health.
4. A company issued a $600,000, 12 percent, 90-day note payable to acquire an office
building. What is the maturity value of the note?
A) $72,000
B) $600,000
C) $618,000
D) $672,000
Answer: C
Interest = Principal × Rate × Time = $600,000 × 0.12 × (90/360) = $18,000. Maturity value =
Principal + Interest = $600,000 + $18,000 = $618,000.
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5. A company had sales of $920,000 and fixed costs of $160,000. What was the income from
operations if the contribution margin ratio was 30 percent?
A) $116,000
B) $276,000
C) $484,000
D) $644,000
Answer: A
Contribution margin = Sales × Contribution margin ratio = $920,000 × 0.30 = $276,000.
Operating income = Contribution margin - Fixed costs = $276,000 - $160,000 = $116,000.
6. The unit selling price of a manufactured product is $100, and the unit variable costs are
$60. If fixed costs are $780,000, what is the break-even number of sales units?
A) 4,875
B) 7,800
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SUCCESS!
ETS MFT BUSINESS EXAM LATEST VERSION
WITH 300 QUESTIONS AND CORRECT
RATIONALIZED SOLUTIONS JUST RELEASED
THIS YEAR (2026-2027)
ETS MFT BUSINESS EXAM — 300 RANDOMIZED PRACTICE QUESTIONS
SECTION 1: ACCOUNTING (Questions 1-60)
1. What is the accounting equation that forms the foundation of double-entry bookkeeping?
A) Assets = Liabilities + Owner's Equity
B) Assets + Liabilities = Owner's Equity
C) Revenue - Expenses = Net Income
D) Assets = Revenue - Expenses
Answer: A
The fundamental accounting equation states that assets equal liabilities plus owner's equity,
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representing the balance sheet identity where resources (assets) are financed by either debt
(liabilities) or ownership claims (equity).
2. A company sold merchandise for $230,000 cash and $310,000 on account. The cost of
merchandise sold was $212,000. What is the amount of gross profit?
A) $18,000
B) $98,000
C) $310,000
D) $328,000
Answer: D
Gross profit is calculated as net sales revenue minus cost of goods sold. Total sales revenue is
$230,000 + $310,000 = $540,000. Gross profit = $540,000 - $212,000 = $328,000.
3. The term "net working capital" refers to which of the following?
A) Inventories, receivables, and current notes and investments
B) Assets divided by liabilities
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C) Current assets less short-term liabilities
D) Net assets left over after subtracting cost of goods sold
Answer: C
Net working capital is the difference between current assets and current liabilities, representing
the liquidity available to fund day-to-day operations. It measures a company's short-term
financial health.
4. A company issued a $600,000, 12 percent, 90-day note payable to acquire an office
building. What is the maturity value of the note?
A) $72,000
B) $600,000
C) $618,000
D) $672,000
Answer: C
Interest = Principal × Rate × Time = $600,000 × 0.12 × (90/360) = $18,000. Maturity value =
Principal + Interest = $600,000 + $18,000 = $618,000.
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5. A company had sales of $920,000 and fixed costs of $160,000. What was the income from
operations if the contribution margin ratio was 30 percent?
A) $116,000
B) $276,000
C) $484,000
D) $644,000
Answer: A
Contribution margin = Sales × Contribution margin ratio = $920,000 × 0.30 = $276,000.
Operating income = Contribution margin - Fixed costs = $276,000 - $160,000 = $116,000.
6. The unit selling price of a manufactured product is $100, and the unit variable costs are
$60. If fixed costs are $780,000, what is the break-even number of sales units?
A) 4,875
B) 7,800
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