ETS Business Exam Study Guide Latest Update 2024-2025 Actual Exam 200 Questions and 100% Verified Correct Answers Guaranteed A+
A firm that would like to know whether it has enough cash to meet its bills would be most likely to use which category of financial ratio - CORRECT ANSWER: liquidity
Accounting: A budget that summarizes future plans for the acquisition of fixed assets is
the... - CORRECT ANSWER: Capital expenditures budget
Accounting: A cost that will not be affected by later decisions is termed an - CORRECT
ANSWER: Sunk Cost
Accounting: A debt may slightly - CORRECT ANSWER: Increase in an asset account
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
Accounting: Expense accounts would have a balance on which side? - CORRECT
ANSWER: Left side
Accounting: Factors in computing depreciation are? - CORRECT ANSWER: Initial cost
- residual value = depreciable
Accounting: In a continuous budget plan how many months are generally planned? -
CORRECT ANSWER: 12 months
Accounting: The effect of a difference in the number of units sold, assuming no charge
in unit sales price or unit cost is... - CORRECT ANSWER: Quantity factor
Accounting: The excess of current assets of a business over its current liabilities is
called? - CORRECT ANSWER: Working capital
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
Accounting: The unfavorable volume variance may be due to all but the following facts...
- CORRECT ANSWER: Unexpected increases in the cost of utilities
Accounting: Total product/ units produced and sold equals?? - CORRECT ANSWER: Product Cost per Unit 1 / 2
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
Accounting: What 2 categories are considered under period costs? - CORRECT
ANSWER: selling expenses and administrative expenses
Accounting: What are the elements of internal control? (3) - CORRECT ANSWER: Control environment, monitoring, and control procedures.
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
Accounting: What are the standard framework of guidelines for financial accounting used in any given jurisdiction, also known as accounting standards?? - CORRECT
ANSWER: GAAP
Accounting: What budget allows for adjustments in activity levels? - CORRECT
ANSWER: Flexible budget
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
Accounting: What is a general explanation of what the contribution margin is? -
CORRECT ANSWER: The difference between variable costs subtracted from sales
Accounting: What would be classified as a current asset on the balance sheet -
CORRECT ANSWER: Accounts receivable
Accounting: Which of the following is not one of the weaknesses of standard costing -
CORRECT ANSWER: It makes accounting for price increases more accurate
Accounting: Which report is the connecting link between the income statement and the
balance sheet? - CORRECT ANSWER: Cash flow statement
As a result of the US government imposing tariffs own foreign steel imports - CORRECT ANSWER: employment in the :US steel industry would increase
Economics: A given tax will cause a bigger deadweight loss if demand and supply are...
- CORRECT ANSWER: Elastic
Economics: How does the federal reserve control the money supply? - CORRECT
ANSWER: Prints more as needed
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