Page | 1
ETS BUSINESS LATEST EXAM
2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
1. Accounting: What costs should be considered when making
non-routine decisions? (3) - correct answer -The price of
material, Factory overhead costs, and the price of labor
2. Accounting: Total product/ units produced and sold equals?? -
correct answer -Product Cost per Unit
3. Accounting: What is a general explanation of what the
contribution margin is? - correct answer -The difference
between variable costs subtracted from sales
4. Accounting: In a continuous budget plan how many months are
generally planned? - correct answer -12 months
, Page | 2
5. Accounting: Which of the following is not one of the
weaknesses of standard costing - correct answer -It makes
accounting for price increases more accurate
6. Accounting: What are the potential ways to find the price of
what a produced products should cost? (3) - correct answer -
Product cost concept, total cost concept, and variable cost
concept
7. Accounting: Which report is the connecting link between the
income statement and the balance sheet? - correct answer -
Cash flow statement
8. The net cash flow from operating activities normally differs from
the amount of net income for the period. - correct answer -True
9. Accounting: Expense accounts would have a balance on which
side? - correct answer -Left side
, Page | 3
10. 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... - correct answer -Corporation
11. Accounting: A debt may slightly - correct answer -Increase in
an asset account
12. Accounting: What would be classified as a current asset on
the balance sheet - correct answer -Accounts receivable
13. Accounting: What are the elements of internal control? (3) -
correct answer -Control environment, monitoring, and control
procedures.
14. 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. - correct answer -True
, Page | 4
15. Accounting: Factors in computing depreciation are? - correct
answer -Initial cost + residual value = depreciable
16. 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?? -
correct answer -Meet its financial obligations, generate cash
from operations, and maintain and expand its operating
capacity
17. 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. - correct answer -True
18. Accounting: The excess of current assets of a business over
its current liabilities is called? - correct answer -Working capital
19. Accounting: What 2 categories are considered under period
costs? - correct answer -selling expenses and administrative
expenses
ETS BUSINESS LATEST EXAM
2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
1. Accounting: What costs should be considered when making
non-routine decisions? (3) - correct answer -The price of
material, Factory overhead costs, and the price of labor
2. Accounting: Total product/ units produced and sold equals?? -
correct answer -Product Cost per Unit
3. Accounting: What is a general explanation of what the
contribution margin is? - correct answer -The difference
between variable costs subtracted from sales
4. Accounting: In a continuous budget plan how many months are
generally planned? - correct answer -12 months
, Page | 2
5. Accounting: Which of the following is not one of the
weaknesses of standard costing - correct answer -It makes
accounting for price increases more accurate
6. Accounting: What are the potential ways to find the price of
what a produced products should cost? (3) - correct answer -
Product cost concept, total cost concept, and variable cost
concept
7. Accounting: Which report is the connecting link between the
income statement and the balance sheet? - correct answer -
Cash flow statement
8. The net cash flow from operating activities normally differs from
the amount of net income for the period. - correct answer -True
9. Accounting: Expense accounts would have a balance on which
side? - correct answer -Left side
, Page | 3
10. 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... - correct answer -Corporation
11. Accounting: A debt may slightly - correct answer -Increase in
an asset account
12. Accounting: What would be classified as a current asset on
the balance sheet - correct answer -Accounts receivable
13. Accounting: What are the elements of internal control? (3) -
correct answer -Control environment, monitoring, and control
procedures.
14. 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. - correct answer -True
, Page | 4
15. Accounting: Factors in computing depreciation are? - correct
answer -Initial cost + residual value = depreciable
16. 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?? -
correct answer -Meet its financial obligations, generate cash
from operations, and maintain and expand its operating
capacity
17. 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. - correct answer -True
18. Accounting: The excess of current assets of a business over
its current liabilities is called? - correct answer -Working capital
19. Accounting: What 2 categories are considered under period
costs? - correct answer -selling expenses and administrative
expenses
