Balance Sheet - CORRECT ANSWER 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 - CORRECT ANSWER AKA profit and loss statement; primarily focuses on the c...
MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
Balance Sheet - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER AKA Statement of Equity;
outlines the changes in retained earnings for a company over a specified period;
Retained Earnings - CORRECT ANSWER 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 - CORRECT ANSWER summarizes the amount of cash and
cash equivalents entering and leaving a company; includes operating, investing, and
financing activities
cash flow - CORRECT ANSWER $$$ that goes in/out of a business
profit - CORRECT ANSWER $$$ leftover after Revenues - Expenses
cash from operating activities - CORRECT ANSWER receipts from sales of
goods/services, interest payments, income tax payments, salaries/wages, rent
ALSO depreciation, inventory, accts receivable, payable
,MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
cash from investing activities - CORRECT ANSWER changes in equipment, assets,
or investments
cash from financing activities - CORRECT ANSWER cash from investors/banks,
dividends, repayment of debt,
Direct Cash Flow Method - CORRECT ANSWER determines changes in cash
receipts and payments, which are reported in the cash flow from the operations section.
Indirect Cash Flow Method - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER 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
Cash Accounting - CORRECT ANSWER recognizes transactions only when
payment is exchanged.
capital stock - CORRECT ANSWER amount of common and preferred shares that a
company is authorized to issue, recorded on the balance sheet under shareholders' equity;
,MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
amount of capital stock is the maximum amount of shares that a company can ever have
outstanding
asset - CORRECT ANSWER resource with economic value that an individual,
corporation or country owns or controls with the expectation that it will provide future
benefit.
current assets - CORRECT ANSWER all the assets of a company that are expected to
be sold/used as a result of standard biz ops over the next year;
includes cash/cash equivalents, accts receivable, inventory, prepaid expenses, marketable
securities
non current assets - CORRECT ANSWER long-term investments not easily
converted to cash or are not expected to become cash within the year; includes
investments, intellectual property, real estate, and equipment
Theory of Constraints - CORRECT ANSWER every process/op is a series of
activities, and there is a WEAK LINK (aka bottleneck) that hinders output
Special Order Decisions - CORRECT ANSWER focus on whether a specially priced
order should be accepted or rejected; fixed costs excluded from special orders
make or buy decisions - CORRECT ANSWER whether or not to manufacture a
product in house or purchase it from 3rd party
, MBA ETS MAJOR FIELD TEST 2024 210 QUESTIONS
WITH CORRECT ANSWERS ALREADY PASSED AND
VERIFIED
transfer pricing - CORRECT ANSWER allows for estab. of prices for goods/services
exchanged btwn legal entities of the same group
sell or process further decision - CORRECT ANSWER choice of selling a product
now or processing it further to earn more revenue
forecasting - CORRECT ANSWER using current and historic cost data to predict
future costs
cash budget - CORRECT ANSWER estimates cash inflows/outflows over a specific
period of time
variance analysis - CORRECT ANSWER study of deviations of actual behavior vs.
forecasted behavior and how it affects biz performance
cost behavior - CORRECT ANSWER the ways in which costs react to changes in biz
activity
variable costs - CORRECT ANSWER costs that vary with the quantity of output
produced; include direct labor costs, costs of raw materials used, utility costs
fixed costs - CORRECT ANSWER Costs that DO NOT vary with the quantity of
output produced; includes interest payments, rent, salaries
break-even analysis - CORRECT ANSWER tells you how many units of a product
must be sold to cover the fixed and variable costs of production
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