PEREGRINE BUSINESS EXAM
QUESTIONS & UPDATED ANSWERS
CORRECT 100%
When a business erroneously records expenses as assets, it has violated the
measurement issue of:
A. communication
B. classification
C. valuation
D. recognition - Correct Answer ✔✔ B. classification
A dividend will reduce which of the following accounts?
A. Dividends
B. Retained Earnings
C. Common Stock
D. Accounts Payable - Correct Answer ✔✔ B. Retained Earnings
Liquidity - Correct Answer ✔✔ The degree to which a security can be quickly purchased
or sold in the market at a price reflecting its current value.
Sarbanes-Oxley Act - Correct Answer ✔✔ Federal law that established sweeping
auditing and financial regulations for public companies. Lawmakers created the
legislation to help protect shareholders, employees and the public from accounting
errors and fraudulent financial practices.
Continually shifting back and forth between the role of speaker and listener is______.
A. a cultural practice
B. distracting to the speaker
C. called framing
D. making smooth transitions - Correct Answer ✔✔ D. making smooth transitions
The real increases in organizational productivity due to information technology come
from ______.
A. the increased speed of message transfer
B. the increased volume of messages
C. the heightened awareness of cultural diversity
D. the ability to communicate in new and different ways - Correct Answer ✔✔ D. the
ability to communicate in new and different ways
, Lying by omission involves intentionally:
A. withholding material facts.
B. creating "noise" within the communication that knowingly confuses or deceives the
receiver.
C. using highly technical language that the receiver does not understand.
D. trying to not hurt someone's feelings. - Correct Answer ✔✔ A. withholding material
facts.
Conflicts of interest exist when employees must choose whether to:
A. advance their own interests, those of the organization, or those of some other group.
B. advance the interests of the organization or those of society.
C. accept bribes.
D. carry out an assignment they perceive as unethical. - Correct Answer ✔✔ A.
advance their own interests, those of the organization, or those of some other group.
Civil Rights Act - Correct Answer ✔✔ 1964; Secured the rights of freedmen., it gave
citizenship to African- Americans
Equal Employment Opportunity - Correct Answer ✔✔ The equal right of all citizens to
the opportunity to obtain employment regardless of their gender, age, race, country of
origin, religion, or disabilities.
Whistleblowing - Correct Answer ✔✔ Activity of a person, often an employee, revealing
information about activity within a private or public organization that is deemed illegal,
immoral, illicit, unsafe or fraudulent.
Group Think - Correct Answer ✔✔ A phenomenon that occurs when a group of
individuals reaches a consensus without critical reasoning or evaluation of the
consequences or alternatives.
Which of the following statements is CORRECT?
A. 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.
B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
C. Two firms with identical sales and operating costs but with different amounts of debt
and tax rates will have different operating incomes by definition.
D. If a firm is reporting its income in accordance with generally accepted accounting
principles, then its net income as reported on the income statement should be equal to
its free cash flow. - Correct Answer ✔✔ A. Free cash flow (FCF) is, essentially, the cash
flow that is available for interest and dividends after the company has made the
QUESTIONS & UPDATED ANSWERS
CORRECT 100%
When a business erroneously records expenses as assets, it has violated the
measurement issue of:
A. communication
B. classification
C. valuation
D. recognition - Correct Answer ✔✔ B. classification
A dividend will reduce which of the following accounts?
A. Dividends
B. Retained Earnings
C. Common Stock
D. Accounts Payable - Correct Answer ✔✔ B. Retained Earnings
Liquidity - Correct Answer ✔✔ The degree to which a security can be quickly purchased
or sold in the market at a price reflecting its current value.
Sarbanes-Oxley Act - Correct Answer ✔✔ Federal law that established sweeping
auditing and financial regulations for public companies. Lawmakers created the
legislation to help protect shareholders, employees and the public from accounting
errors and fraudulent financial practices.
Continually shifting back and forth between the role of speaker and listener is______.
A. a cultural practice
B. distracting to the speaker
C. called framing
D. making smooth transitions - Correct Answer ✔✔ D. making smooth transitions
The real increases in organizational productivity due to information technology come
from ______.
A. the increased speed of message transfer
B. the increased volume of messages
C. the heightened awareness of cultural diversity
D. the ability to communicate in new and different ways - Correct Answer ✔✔ D. the
ability to communicate in new and different ways
, Lying by omission involves intentionally:
A. withholding material facts.
B. creating "noise" within the communication that knowingly confuses or deceives the
receiver.
C. using highly technical language that the receiver does not understand.
D. trying to not hurt someone's feelings. - Correct Answer ✔✔ A. withholding material
facts.
Conflicts of interest exist when employees must choose whether to:
A. advance their own interests, those of the organization, or those of some other group.
B. advance the interests of the organization or those of society.
C. accept bribes.
D. carry out an assignment they perceive as unethical. - Correct Answer ✔✔ A.
advance their own interests, those of the organization, or those of some other group.
Civil Rights Act - Correct Answer ✔✔ 1964; Secured the rights of freedmen., it gave
citizenship to African- Americans
Equal Employment Opportunity - Correct Answer ✔✔ The equal right of all citizens to
the opportunity to obtain employment regardless of their gender, age, race, country of
origin, religion, or disabilities.
Whistleblowing - Correct Answer ✔✔ Activity of a person, often an employee, revealing
information about activity within a private or public organization that is deemed illegal,
immoral, illicit, unsafe or fraudulent.
Group Think - Correct Answer ✔✔ A phenomenon that occurs when a group of
individuals reaches a consensus without critical reasoning or evaluation of the
consequences or alternatives.
Which of the following statements is CORRECT?
A. 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.
B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
C. Two firms with identical sales and operating costs but with different amounts of debt
and tax rates will have different operating incomes by definition.
D. If a firm is reporting its income in accordance with generally accepted accounting
principles, then its net income as reported on the income statement should be equal to
its free cash flow. - Correct Answer ✔✔ A. Free cash flow (FCF) is, essentially, the cash
flow that is available for interest and dividends after the company has made the
