ETS Business Exam Study Guide Questions with Complete Solutions (Latest 2025)
Accounting: What costs should be considered when making
non-routine decisions? (3) - Correct Answers ✅The price of material, Factory overhead costs, and the price of labor
Accounting: Total product/ units produced and sold equals?? -
Correct Answers ✅Product Cost per Unit
Accounting: What is a general explanation of what the
contribution margin is? - Correct Answers ✅The difference between variable costs subtracted from sales
Accounting: In a continuous budget plan how many months
are generally planned? - Correct Answers ✅12 months
Accounting: Which of the following is not one of the
weaknesses of standard costing - Correct Answers ✅It makes accounting for price increases more accurate
Accounting: What are the potential ways to find the price of
what a produced products should cost? (3) - Correct Answers ✅Product cost concept, total cost concept, and variable cost concept 1 / 4
ETS Business Exam Study Guide Questions with Complete Solutions (Latest 2025)
Accounting: Which report is the connecting link between the
income statement and the balance sheet? - Correct Answers ✅Cash flow statement The net cash flow from operating activities normally differs from the amount of net income for the period. - Correct Answers ✅True
Accounting: Expense accounts would have a balance on
which side? - Correct Answers ✅Left side
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 Answers ✅Corporation
Accounting: A debt may slightly - Correct Answers
✅Increase in an asset account
Accounting: What would be classified as a current asset on
the balance sheet - Correct Answers ✅Accounts receivable
Accounting: What are the elements of internal control? (3) -
Correct Answers ✅Control environment, monitoring, and control procedures. 2 / 4
ETS Business Exam Study Guide Questions with Complete Solutions (Latest 2025)
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 Answers ✅True
Accounting: Factors in computing depreciation are? - Correct
Answers ✅Initial cost + residual value = depreciable
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 Answers ✅Meet its financial obligations, generate cash from operations, and maintain and expand 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. - Correct Answers ✅True
Accounting: The excess of current assets of a business over
its current liabilities is called? - Correct Answers ✅Working capital 3 / 4
ETS Business Exam Study Guide Questions with Complete Solutions (Latest 2025)
Accounting: What 2 categories are considered under period
costs? - Correct Answers ✅selling expenses and administrative expenses
Accounting: The effect of a difference in the number of units
sold, assuming no charge in unit sales price or unit cost is... - Correct Answers ✅Quantity factor
Accounting: A cost that will not be affected by later decisions
is termed an - Correct Answers ✅Sunk Cost
Accounting: The unfavorable volume variance may be due to
all but the following facts... - Correct Answers ✅Unexpected increases in the cost of utilities
Accounting: What budget allows for adjustments in activity
levels? - Correct Answers ✅Flexible budget
Accounting: A budget that summarizes future plans for the
acquisition of fixed assets is the... - Correct Answers ✅Capital expenditures budget
Accounting: What are the standard framework of guidelines
for financial accounting used in any given jurisdiction, also
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