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PEREGRINE EXAM- QUESTIONS WITH COMPLETE SOLUTIONS
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PEREGRINE EXAM- QUESTIONS WITH COMPLETE SOLUTIONS PEREGRINE EXAM- QUESTIONS WITH COMPLETE SOLUTIONS
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PEREGRINE EXAM- 2024-2025 QUESTIONSWITH COMPLETE SOLUTIONS
What is a general ledger? - CORRECT ANSWER A general ledger account is an
account or record used to sort, store and summarize a company's transactions.
asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and
Equipment
liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable,
and Customer Deposits
stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury
Stock, and Accumulated Other Comprehensive Income
What is the difference between accounts payable and accounts receivable? - CORRECT
ANSWER Accounts payable is a current liability account in which a company records
the amounts it owes to suppliers or vendors for goods or services that it received on
credit.
Accounts receivable is a current asset account in which a company records the amounts
it has a right to collect from customers who received goods or services on credit.
What is the cost of goods sold? - CORRECT ANSWER The cost of goods sold is the
cost of the products that a retailer, distributor, or manufacturer has sold.
What is owner's equity? - CORRECT ANSWER Owner's equity is one of the three
main sections of a sole proprietorship's balance sheet and one of the components of the
accounting equation: Assets = Liabilities + Owner's Equity.
, PEREGRINE EXAM- 2024-2025 QUESTIONS
WITH COMPLETE SOLUTIONS
What is principles of accounting? - CORRECT ANSWER Principles of accounting can
also refer to the basic or fundamental accounting principles: cost principles, matching
principles, full disclosure principles, materiality principles, going concern principles,
economic entity principles, and so on. In this context, principles of accounting refers to
the broad underlying concepts which guide accountants when preparing financial
statements.
What is equity? - CORRECT ANSWER Equity can indicate an ownership interest in a
business, such as stockholders' equity or owner's equity.
Equity can mean an owner's interest in a personal asset. For example, the owner of a
$200,000 house that has a mortgage loan of $75,000 is said to have $125,000 of equity
in the house.
What is meant by reconciling an account? - CORRECT ANSWER Reconciling an
account is likely to mean proving or documenting that an account balance is correct.
What is included in cash and cash equivalents? - CORRECT ANSWER In accounting,
a company's cash includes the following:
currency and coins
checks received from customers but not yet deposited
checking accounts
petty cash
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