ETS MFT MBA TEST BANK 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ After an extensive recruitment process to select well-qualified
individuals, a large percent of a company's new hires resigned within the
first month of the job. Which of the following is the most likely
explanation for this situation?
A. The training process to prepare the new hires for their assigned tasks
was inadequate.
B. The health benefits provided by the company were not competitive
with those of the rest of the industry.
C. The starting salary for the new hire was not competitive with that of
the rest of the industry.
D. The new hires lacked the basic skills required to learn the job.
Answer: A. The training process to prepare the new hires for their
assigned tasks was inadequate.
◉ Prosco Ltd. employs a process cost system. Inspection of units occurs
at the 50 percent mark. Defective units are then removed from the
process, and their cost ($4.50) is absorbed by the goods units. Prosco has
recently been approached by a firm wishing to buy the defective units
for a special use. The firm would require Prosco to modify the defective
, units at a cost unit of $2.00. If presco sells the defective units to the firm
for $5.00 each, how would Prosco's reported income be affected?
A. It would decrease by $4.50 per unit sold.
B. It would decrease by $ 1.50 per unit sold
C. It would decrease by $3.00 per unit sold
D. It would decrease by $5.00 per unit sold. Answer: C. It would
decrease by $3.00 per unit sold
◉ Some companies have little, if any, net income or earnings, yet they
seem to have all the money they need for capital expenditures. Which of
the following best explains how such companies operate?
A. They have good cash flows.
B. They lease capital equipment that does not show up on balance
sheets.
C. They have accounts with many different banks.
D. They issue warrants to their officers. Answer: A. They have good
cash flows.
◉ The Sintar Corporation has just announced that it will pay $1.10 per
share in dividends to its stockholders in the current quarter. The prior
quarter's dividend was $1.00 per share. The announcement indicates
which if the following?
WITH ANSWERS GRADED A+
◉ After an extensive recruitment process to select well-qualified
individuals, a large percent of a company's new hires resigned within the
first month of the job. Which of the following is the most likely
explanation for this situation?
A. The training process to prepare the new hires for their assigned tasks
was inadequate.
B. The health benefits provided by the company were not competitive
with those of the rest of the industry.
C. The starting salary for the new hire was not competitive with that of
the rest of the industry.
D. The new hires lacked the basic skills required to learn the job.
Answer: A. The training process to prepare the new hires for their
assigned tasks was inadequate.
◉ Prosco Ltd. employs a process cost system. Inspection of units occurs
at the 50 percent mark. Defective units are then removed from the
process, and their cost ($4.50) is absorbed by the goods units. Prosco has
recently been approached by a firm wishing to buy the defective units
for a special use. The firm would require Prosco to modify the defective
, units at a cost unit of $2.00. If presco sells the defective units to the firm
for $5.00 each, how would Prosco's reported income be affected?
A. It would decrease by $4.50 per unit sold.
B. It would decrease by $ 1.50 per unit sold
C. It would decrease by $3.00 per unit sold
D. It would decrease by $5.00 per unit sold. Answer: C. It would
decrease by $3.00 per unit sold
◉ Some companies have little, if any, net income or earnings, yet they
seem to have all the money they need for capital expenditures. Which of
the following best explains how such companies operate?
A. They have good cash flows.
B. They lease capital equipment that does not show up on balance
sheets.
C. They have accounts with many different banks.
D. They issue warrants to their officers. Answer: A. They have good
cash flows.
◉ The Sintar Corporation has just announced that it will pay $1.10 per
share in dividends to its stockholders in the current quarter. The prior
quarter's dividend was $1.00 per share. The announcement indicates
which if the following?
