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ETS MFT Business Exam Version 3 Newest 2025/ 2026
Complete All Questions And Correct Detailed Answers
With Rationales (Verified Answers) |Already Graded
A+||Latest Version!!!
Which of the following are/is potential ways to find the
price of what a produced product should cost?
a) product cost concept
b) total cost concept
c) variable cost concept
d) all of the above - ANSWER-d) all of the above
Which report is the connecting link between the income
statement and balance sheet?
a) cash flows statement
b) retained earnings statement
c) trial balance
d) all of the above - ANSWER-a) cash flows statement
The net cash flow from operating activities normally differs
from the amount of net income for the period.
True or False - ANSWER-True
Expense accounts would have a balance on which side?
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a) Right side
b) left side
c) debit side
d) credit side
e) A & C - ANSWER-e) A & C
right side, debit side
A profit-making business operating as a separated legal
entity and in which ownership is divided into shares of
stock is known as
a) service business
b) corporation
c) partnership
d) proprietorship - ANSWER-b) corporation
A debit may signify a(n)
a) decrease in an asset account
b) increase in an asset account
c) increase in a liability account
d) increase in the capital stock account - ANSWER-b)
increase in an asset account
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Which of the following accounts would be classified as a
current asset on the balance sheet?
a) accounts receivable
b) office equipment
c) land
d) accumulated depreciation - ANSWER-a) accounts
receivable
Which of the following is NOT an element of internal
control?
a) monitoring
b) control procedures
c) control environment
d) compliance with laws and regulations - ANSWER-d)
compliance with laws and regulations
A cash distribution of earnings by a corporation to its
stockholders is called a cash dividend. The three
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 or False - ANSWER-True
, 4|Page
Factors in computing depreciation are
a) useful life + initial cost = depreciable costs
b) initial costs - residual value = depreciable costs
c) market value + residual value = depreciable costs
d) none of the above - ANSWER-b) initial costs - residual
value = depreciable costs
Which of the following statements regarding present and
future values of streams of cash payments are incorrect?
a) a level stream of cash payments that continues
indefinitely is known as a perpetuity; one that continues for
a limited number of years is called an annuity
b) the present value of a stream of cash flows is simply the
sum of the present value of each individual cash flow
c) shortcut formulas make the calculations for perpetuities
and annuities easy
d) the future value of an annuity is the sum of the future
value of each individual cash flow - ANSWER-a) a level
stream of cash payments that continues indefinitely is
known as a perpetuity; one that continues for a limited
number of years is called an annuity
The decision rule for the net present value is to
ETS MFT Business Exam Version 3 Newest 2025/ 2026
Complete All Questions And Correct Detailed Answers
With Rationales (Verified Answers) |Already Graded
A+||Latest Version!!!
Which of the following are/is potential ways to find the
price of what a produced product should cost?
a) product cost concept
b) total cost concept
c) variable cost concept
d) all of the above - ANSWER-d) all of the above
Which report is the connecting link between the income
statement and balance sheet?
a) cash flows statement
b) retained earnings statement
c) trial balance
d) all of the above - ANSWER-a) cash flows statement
The net cash flow from operating activities normally differs
from the amount of net income for the period.
True or False - ANSWER-True
Expense accounts would have a balance on which side?
,2|Page
a) Right side
b) left side
c) debit side
d) credit side
e) A & C - ANSWER-e) A & C
right side, debit side
A profit-making business operating as a separated legal
entity and in which ownership is divided into shares of
stock is known as
a) service business
b) corporation
c) partnership
d) proprietorship - ANSWER-b) corporation
A debit may signify a(n)
a) decrease in an asset account
b) increase in an asset account
c) increase in a liability account
d) increase in the capital stock account - ANSWER-b)
increase in an asset account
,3|Page
Which of the following accounts would be classified as a
current asset on the balance sheet?
a) accounts receivable
b) office equipment
c) land
d) accumulated depreciation - ANSWER-a) accounts
receivable
Which of the following is NOT an element of internal
control?
a) monitoring
b) control procedures
c) control environment
d) compliance with laws and regulations - ANSWER-d)
compliance with laws and regulations
A cash distribution of earnings by a corporation to its
stockholders is called a cash dividend. The three
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 or False - ANSWER-True
, 4|Page
Factors in computing depreciation are
a) useful life + initial cost = depreciable costs
b) initial costs - residual value = depreciable costs
c) market value + residual value = depreciable costs
d) none of the above - ANSWER-b) initial costs - residual
value = depreciable costs
Which of the following statements regarding present and
future values of streams of cash payments are incorrect?
a) a level stream of cash payments that continues
indefinitely is known as a perpetuity; one that continues for
a limited number of years is called an annuity
b) the present value of a stream of cash flows is simply the
sum of the present value of each individual cash flow
c) shortcut formulas make the calculations for perpetuities
and annuities easy
d) the future value of an annuity is the sum of the future
value of each individual cash flow - ANSWER-a) a level
stream of cash payments that continues indefinitely is
known as a perpetuity; one that continues for a limited
number of years is called an annuity
The decision rule for the net present value is to
