ETS Business Exam Study Guide | 228 Questions with 100% Correct Answers | Verified | Updated 2023

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ETS Business Exam Study Guide | 228 Questions with 100% Correct Answers | Verified | Updated 2023 Accounting: What costs should be considered when making non-routine decisions? (3) ✔✔The pr ... ice of material, Factory overhead costs, and the price of labor Accounting: Total product/ units produced and sold equals?? ✔✔Product Cost per Unit Accounting: What is a general explanation of what the contribution margin is? ✔✔The difference between variable costs subtracted from sales Accounting: In a continuous budget plan how many months are generally planned? ✔✔12 months Accounting: Which of the following is not one of the weaknesses of standard costing ✔✔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) ✔✔Product cost concept, total cost concept, and variable cost concept Accounting: Which report is the connecting link between the income statement and the balance sheet? ✔✔Cash flow statement The net cash flow from operating activities normally differs from the amount of net income for the period. ✔✔True Accounting: Expense accounts would have a balance on which side? ✔✔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... ✔✔Corporation Accounting: A debt may slightly ✔✔Increase in an asset account Accounting: What would be classified as a current asset on the balance sheet ✔✔Accounts receivable Accounting: What are the elements of internal control? (3) ✔✔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 are: sufficient retained earnings, sufficient cash, and formal action by the board of directors. ✔✔True Accounting: Factors in computing depreciation are? ✔✔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?? ✔✔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. ✔✔True Accounting: The excess of current assets of a business over its current liabilities is called? ✔✔Working capital Accounting: What 2 categories are considered under period costs? ✔✔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... ✔✔Quantity factor Accounting: A cost that will not be affected by later decisions is termed an ✔✔Sunk Cost Accounting: The unfavorable volume variance may be due to all but the following facts... ✔✔Unexpected increases in the cost of utilities Accounting: What budget allows for adjustments in activity levels? ✔✔Flexible budget Accounting: A budget that summarizes future plans for the acquisition of fixed assets is the... ✔✔Capital expenditures budget [Show More]

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