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Peregrine accounting and finance Exam with solved questions
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Peregrine accounting and finance Exam
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Peregrine accounting and financeWhich financial statement reports the revenues and expenses for a period of time such
as year or a month? - answersIncome Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's)
equity at a specific date? - answersBalance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period
when which of the following occurs? - answersServices or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period
when which of the following occurs? - answersan expense matches the revenues or is
used up
Revenue minus expenses equals _____. - answersnet income
Resources owned by a company (such as cash, accounts receivable, vehicles) are
reported on the balance sheet and are referred to as
_________ - answersassets
Assets are usually reported on the balance sheet at which amount? - answerscost
Cost principle - answersA principle that states that acquired assets and services should
be recorded at their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ - answersliabilities
Liabilities often have the word
__________
, in their account title - answerspayables
Unearned Revenues is what type of account? - answersLiability (The company that is to
perform the service or is to deliver the product has received the cash in advance and
therefore has an obligation (liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? - answersTwo - because
of the double entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ - answersstockholders' equity or owner's equity
(net assets if a nonprofit)
Which term is associated with "left" or "left side"? - answersDebit
Which term is associated with "right" or "right side"? - answersCredit
When cash is received, the account Cash will be _________ - answersDebited
When a company pays a bill, the account Cash will be __________. - answersCredited
What will usually cause an asset account to increase? - answersDebit
What will usually cause the liability account Accounts Payable to increase? -
answersCredit
Entries to expenses such as Rent Expense are usually _________ - answersDebits
Entries to revenues accounts such as Service Revenues are usually _________ -
answersCredits
Discounted cash flow analysis determines value by - answersfinding the present value
of all future payments
What is present value? - answersthe current value of future cash flows discounted at
the appropriate discount rate
what is cash flow - answersthe total amount of money being transferred into and out of
a business
lowering interest rates through central bank action is thought to cause - answerslower
unemployment
central bank - answersan institution designed to oversee the banking system and
regulate the quantity of money in the economy
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