PEREGRINE EXAM 2024/2025 WITH100%
CORRECT ANSWERS
Which of the following is NOT a strategic alternative to laying off
employees? - CORRECT ANSWER implementing a restricted hiring
policy
downsizing the workforce
lowering employment standards
mandating reduced hours
Lowering Employment Standards
KJ built his taco truck out of $75,000,000 worth of titanium and duct
tape. He uses $10.25 of organic bok choy, $6.75 of Wisconsin cheddar
cheese, and $25.25 of foie gras in each taco. If he sells tacos at $475
each, what is his break-even quantity? - CORRECT ANSWER 194,640
173,310
167,125
181,292
173,310
The Marketing Concept today is about what? - CORRECT ANSWER
Sales
Relationships
Aggressive advertising
Price
Sales
Which of these is not a cash flow activity category in the Statement of
cash flows? - CORRECT ANSWER operating.
investing.
financing.
depreciating.
,Depreciating
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.
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
Cash equivalents are short-term, highly liquid investments with a
maturity date that was 3 months or less at the time of purchase.
money market accounts
U.S. Treasury Bills
commercial paper
What is the difference between an implicit cost and an explicit cost? -
CORRECT ANSWER An implicit cost is present but it is not initially
shown or reported as a separate cost.
An explicit cost is a cost that is present and it is clearly shown or
reported as a separate cost.
What is the difference between stocks and bonds? - CORRECT ANSWER
Stocks, or shares of capital stock, represent an ownership interest in
a corporation. Every corporation has common stock.
Bonds are a form of long-term debt in which the issuing corporation
promises to pay the principal amount at a specified maturity date.
, AN INCREASE TO WHICH OF THE FOLLOWING ACCOUNTS WILL
INCREASE OWNERS' EQUITY? - CORRECT ANSWER Client Fees
IN TIMES OF RISING PRICES, THE INVENTORY COST METHOD THAT
WILL YIELD THE LOWEST NET INCOME IS: - CORRECT ANSWER LIFO
(LIFO is the acronym for last-in, first-out, which is a cost flow
assumption often used by U.S. corporations in moving costs from
inventory to the cost of goods sold.
Example: Assume that a corporation uses LIFO and has three units of
a product in its inventory. Due to its supplier raising its prices, the
corporation purchased the items at different costs and in the following
sequence: $40, $44, and $46. The corporation ships the oldest item
(the one purchased for $40) to a customer at a selling price of $60.
However, under the LIFO cost flow assumption the company reports
its cost of goods sold at $46 (the latest cost) and reports a gross profit
of $14. (The costs of $40 and $44 remain in inventory.)
When a business erroneously records expenses as assets, it has
violated the measurement issue of - CORRECT ANSWER classification
A dividend will reduce which of the following accounts? - CORRECT
ANSWER Retained Earnings
Lying by omission involves intentionally - CORRECT ANSWER
withholding material facts.
Conflicts of interest exist when employees must choose whether to -
CORRECT ANSWER advance their own interests, those of the
organization, or those of some other group.
Which of the following statements is CORRECT? - CORRECT ANSWER
Free cash flow (FCF) is, essentially, the cash flow that is available for
interest and dividends after the company has made the investments in
current and fixed assets that are necessary to sustain ongoing
operations.
