Accounting Peregrine Exam Questions
And Answers With Verified Solutions
Already Passed!!! (GRADED A+)
Relevance - ANSWER✔✔ The quality of information that indicates the information
makes a difference in a decision.
Reliability - ANSWER✔✔ the quality of information that gives assurance that it is
free of error and bias
Comparability - ANSWER✔✔ Ability to compare the accounting information of
different companies because they use the same accounting principles.
Consistency - ANSWER✔✔ use of the same accounting principles and methods
from year to year within a company
Monetary Unit Assumption - ANSWER✔✔ Only items that be expressed in money
are included in the accounting records
Economic Entity Assumption - ANSWER✔✔ every economic entity can be
separately identified and accounted for
Time Period - ANSWER✔✔ The life of a business is divided into meaningful time
periods for financial reporting
Going Concern Assumption - ANSWER✔✔ Entity will continue to operate long
enough to recover the cost of its assets
, Revenue Recognition Principle - ANSWER✔✔ a revenue should be recorded when
a resource has been earned
Matching - ANSWER✔✔ Expenses are matched with related values in the same
accounting period
Cost Principle - ANSWER✔✔ A principle that states that acquired assets and
services should be recorded at their actual cost.
Full Disclosure Principle - ANSWER✔✔ A company reports details behind financial
statements that would impact users' decisions.
Materiality Constraint - ANSWER✔✔ Whether an item was large enough to likely
influence the decision of investor or creditor
Cost-Benefit constraint - ANSWER✔✔ only information with benefits of
disclosures greater than the costs of providing it need be disclosed
Conservatism Principle - ANSWER✔✔ the approach of choosing an accounting
method that will least likely overstate assets and net income
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 classhub. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
