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Foundations of Business Finance
(Peregrine) Questions and Correct
Answers/ Latest Update / Already Graded
True or false: The one fixed asset that is not depreciated is land
because it seldom declines in value.
Ans: True
__________ liabilities are those due within one year.
Ans: Current
__________-__________ __________ liabilities are due after more than
a year, and may include bonds, mortgages, and long-term loans.
Ans: Long-term debt
Name the three types of accounts listed as current liabilities on balance
sheets.
Ans: (1) Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable
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Ans: The amounts owed for credit purchases by a firm
Notes payable
Ans: Outstanding short-term loans, typically from commercial
banks
Accrued expenses
Ans: Costs that have been incurred by a firm which have not
yet been paid; examples of accruals include taxes owed to the
government and unpaid wages
The __________ __________ section of a balance sheet provides
information about the claims against a firm held by investors who own
preferred and common shares.
Ans: Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in
four types of accounts. These include __________ __________,
__________ __________, __________-__________-__________
__________ ___________ __________ __________, and __________
__________.
Ans: (1) preferred stock
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(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of
preferred stock.
Ans: Preferred stock
__________-__________-__________ __________ __________
__________ __________ equals the number of shares outstanding
multiplied by the original selling price of the shares, net of the par
value.
Ans: Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common
shares multiplied by the par value per share.
Ans: Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer
accounting methods used to track the number of outstanding shares. It
has no relation to the actual value of the shares.
Ans: Par value
All rights reserved © 2025/ 2026 |
Foundations of Business Finance
(Peregrine) Questions and Correct
Answers/ Latest Update / Already Graded
True or false: The one fixed asset that is not depreciated is land
because it seldom declines in value.
Ans: True
__________ liabilities are those due within one year.
Ans: Current
__________-__________ __________ liabilities are due after more than
a year, and may include bonds, mortgages, and long-term loans.
Ans: Long-term debt
Name the three types of accounts listed as current liabilities on balance
sheets.
Ans: (1) Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable
All rights reserved © 2025/ 2026 |
, Page |2
Ans: The amounts owed for credit purchases by a firm
Notes payable
Ans: Outstanding short-term loans, typically from commercial
banks
Accrued expenses
Ans: Costs that have been incurred by a firm which have not
yet been paid; examples of accruals include taxes owed to the
government and unpaid wages
The __________ __________ section of a balance sheet provides
information about the claims against a firm held by investors who own
preferred and common shares.
Ans: Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in
four types of accounts. These include __________ __________,
__________ __________, __________-__________-__________
__________ ___________ __________ __________, and __________
__________.
Ans: (1) preferred stock
All rights reserved © 2025/ 2026 |
, Page |3
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of
preferred stock.
Ans: Preferred stock
__________-__________-__________ __________ __________
__________ __________ equals the number of shares outstanding
multiplied by the original selling price of the shares, net of the par
value.
Ans: Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common
shares multiplied by the par value per share.
Ans: Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer
accounting methods used to track the number of outstanding shares. It
has no relation to the actual value of the shares.
Ans: Par value
All rights reserved © 2025/ 2026 |
