Exam (elaborations)
ACCOUNTING PEREGRINE EXAM QUESTIONS WITH 100% CORRECT ANSWERS
- Course
- Institution
ACCOUNTING PEREGRINE EXAM QUESTIONS WITH 100% CORRECT ANSWERS
[Show more]
Content preview
ESTUDYACCOUNTING PEREGRINE EXAM QUESTIONS
WITH 100% CORRECT ANSWERS
1. **What does relevance mean in financial information?**
- A. The quality of information that makes a difference in a decision
- B. The quality of information that is free of error
- C. The ability to compare information across companies
- D. The use of the same methods year to year
**Answer: A. The quality of information that makes a difference in a decision**
2. **What does reliability refer to in financial information?**
- A. Assurance that information is free of error and bias
- B. Ability to compare financial data of different companies
- C. Use of consistent accounting principles
- D. Information on the company’s future plans
**Answer: A. Assurance that information is free of error and bias**
3. **What is comparability in financial reporting?**
- A. Ability to compare the accounting information of different companies using the same principles
- B. Ability to analyze financial data within the same company
- C. Use of varied accounting methods to suit different needs
- D. Consistency in reporting across different periods
**Answer: A. Ability to compare the accounting information of different companies using the same
principles**
4. **What does consistency mean in accounting?**
- A. Use of the same accounting principles and methods from year to year within a company
- B. Changing accounting methods frequently
- C. Comparing financial statements of different companies
- D. Reporting financial information in a timely manner
**Answer: A. Use of the same accounting principles and methods from year to year within a
company**
5. **What is the Monetary Unit Assumption?**
, ESTUDY
- A. Only items that can be expressed in money are included in the accounting records
- B. All assets are recorded at market value
- C. The value of currency is adjusted for inflation
- D. Non-monetary items are excluded from the records
**Answer: A. Only items that can be expressed in money are included in the accounting records**
6. **What does the Economic Entity Assumption state?**
- A. Every economic entity can be separately identified and accounted for
- B. All financial activities are reported in one account
- C. Assets and liabilities of different companies are combined
- D. Financial information is reported by fiscal year
**Answer: A. Every economic entity can be separately identified and accounted for**
7. **What is the Time Period assumption?**
- A. The life of a business is divided into meaningful time periods for financial reporting
- B. Financial statements are reported annually
- C. The business operates indefinitely
- D. All financial transactions are recorded on a monthly basis
**Answer: A. The life of a business is divided into meaningful time periods for financial reporting**
8. **What does the Going Concern Assumption imply?**
- A. The entity will continue to operate long enough to recover the cost of its assets
- B. The business will close its operations within a year
- C. The company will cease operations immediately
- D. The business is only concerned with short-term profitability
**Answer: A. The entity will continue to operate long enough to recover the cost of its assets**
9. **When should revenue be recorded according to the Revenue Recognition Principle?**
- A. When a resource has been earned
- B. When cash is received
- C. At the end of the fiscal year
- D. When the payment is made
**Answer: A. When a resource has been earned**
10. **What does Matching refer to in accounting?**
- A. Expenses are matched with related revenues in the same accounting period
- B. Recording expenses as soon as they are incurred
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Estudyr. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now