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MBA ETS MAJOR FIELD TEST QUESTIONS WITH
CORRECT ANSWERS ALREADY PASSED AND VERIFIED
UPDATED 2025/2026
Balance Sheet - (answers)a financial statement that reports a company's assets,
liabilities, and shareholder equity at a specific point in time; Assets = Liabilities +
Shareholder's Equity
Income Statement - (answers)AKA profit and loss statement; primarily focuses on
the company's revenues and expenses during a particular period;
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Statement of Retained Earnings - (answers)AKA Statement of Equity; outlines the
changes in retained earnings for a company over a specified period;
Retained Earnings - (answers)profits held by a company in reserve in order to
invest in future projects rather than distribute as dividends to shareholders
Statement of Cash Flows - (answers)summarizes the amount of cash and cash
equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - (answers)$$$ that goes in/out of a business
profit - (answers)$$$ leftover after Revenues - Expenses
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cash from operating activities - (answers)receipts from sales of goods/services,
interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
cash from investing activities - (answers)changes in equipment, assets, or
investments
cash from financing activities - (answers)cash from investors/banks, dividends,
repayment of debt,
Direct Cash Flow Method - (answers)determines changes in cash receipts and
payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - (answers)takes the net income generated in a period
and adds or subtracts changes in the asset and liability accounts to determine the
implied cash flow
liquidity - (answers)the ease with which an asset, or security, can be converted
into ready cash without affecting its market price; cash is the most liquid of assets
Accrual Basis Accounting - (answers)revenue or expenses are recorded when a
transaction occurs; follows the matching principle, which says that revenues and
expenses should be recognized in the same period
MBA ETS MAJOR FIELD TEST QUESTIONS WITH
CORRECT ANSWERS ALREADY PASSED AND VERIFIED
UPDATED 2025/2026
Balance Sheet - (answers)a financial statement that reports a company's assets,
liabilities, and shareholder equity at a specific point in time; Assets = Liabilities +
Shareholder's Equity
Income Statement - (answers)AKA profit and loss statement; primarily focuses on
the company's revenues and expenses during a particular period;
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Statement of Retained Earnings - (answers)AKA Statement of Equity; outlines the
changes in retained earnings for a company over a specified period;
Retained Earnings - (answers)profits held by a company in reserve in order to
invest in future projects rather than distribute as dividends to shareholders
Statement of Cash Flows - (answers)summarizes the amount of cash and cash
equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - (answers)$$$ that goes in/out of a business
profit - (answers)$$$ leftover after Revenues - Expenses
, 2
cash from operating activities - (answers)receipts from sales of goods/services,
interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
cash from investing activities - (answers)changes in equipment, assets, or
investments
cash from financing activities - (answers)cash from investors/banks, dividends,
repayment of debt,
Direct Cash Flow Method - (answers)determines changes in cash receipts and
payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - (answers)takes the net income generated in a period
and adds or subtracts changes in the asset and liability accounts to determine the
implied cash flow
liquidity - (answers)the ease with which an asset, or security, can be converted
into ready cash without affecting its market price; cash is the most liquid of assets
Accrual Basis Accounting - (answers)revenue or expenses are recorded when a
transaction occurs; follows the matching principle, which says that revenues and
expenses should be recognized in the same period
