ETS Business Latest Exam with Verified Solutions 2024/2025

ETS Business Latest Exam with Verified Solutions 2024 Accounting: What costs should be considered when making non-routine decisions? (3) - Answer -The price of material, Factory overhead costs, and the price of labor Accounting: Total product/ units produced and sold equals?? - Answer -Product Cost per Unit Accounting: What is a general explanation of what the contribution margin is? - Answer -The difference between variable costs subtracted from sales Accounting: In a continuous budget plan how many months are generally planned? - Answer -12 months Accounting: Which of the following is not one of the weaknesses of standard costing - Answer -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) - Answer -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? - Answer -Cash flow statement The net cash flow from operating activities normally differs from the amount of net income for the period. - Answer -True Accounting: Expense accounts would have a balance on which side? - Answer -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... - Answer -Corporation Accounting: A debt may slightly - Answer -Increase in an asset account Accounting: What would be classified as a current asset on the balance sheet - Answer -Accounts receivable Accounting: What are the elements of internal control? (3) - Answer -Control environment, monitoring, and control procedures. 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. - Answer -True Accounting: Factors in computing depreciation are? - Answer -Initial cost + residual value = depreciableAccounting: 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?? - Answer -Meet its financial obligations, generate cash from operations, and maintain and expand its operating capacity Accounting: 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. - Answer -True Accounting: The excess of current assets of a business over its current liabilities is called? - Answer - Working capital Accounting: What 2 categories are considered under period costs? - Answer -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... - Answer -Quantity factor Accounting: A cost that will not be affected by later decisions is termed an - Answer -Sunk Cost Accounting: The unfavorable volume variance may be due to all but the following facts... - Answer - Unexpected increases in the cost of utilities Accounting: What budget allows for adjustments in activity levels? - Answer -Flexible budget Accounting: A budget that summarizes future plans for the acquisition of fixed assets is the... - Answer - Capital expenditures budget Accounting: What are the standard framework of guidelines for financial accounting used in any given jurisdiction, also known as accounting standards?? - Answer -GAAP Economics: What occurs when the price level rises? - Answer -People need to hold more money, so interest rates rise, making firms borrow and invest less Economics: The federal government enacted regulation in the 1960's requiring people to wear seatbelt in their cars. All of the following resulted from this regulation, EXCEPT: - Answer -Fewer pedestrians were killed in car accidents. Economics: Which of the following is true regarding the production possibilities frontier model of the economy? - Answer -Any point along the PPF represents an efficient level of production. Economics: If the price in a market happens to be above equilibrium, there will be a _____ in the market, and the price will tend to _____. - Answer -Surplus, drop Economics: The price elasticity of demand tends to be more elastic... - Answer -At points further up and to the left along the demand curve