Peregrine Exam Question and Answer 2026 |
Comprehensive Review with Detailed Rationales
| Grade A+
When a business erroneously records expenses as assets, it has violated the
measurement issue of:
A. communication
B. classification
C. valuation
D. recognition -✓✓B. classification
A dividend will reduce which of the following accounts?
A. Dividends
B. Retained Earnings
C. Common Stock
D. Accounts Payable -✓✓B. Retained Earnings
Liquidity -✓✓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 -✓✓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 -✓✓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 -✓✓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. -✓✓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. -✓✓A. advance their own
interests, those of the organization, or those of some other group.
Civil Rights Act -✓✓1964; Secured the rights of freedmen., it gave citizenship to
African- Americans
Equal Employment Opportunity -✓✓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 -✓✓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 -✓✓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. -✓✓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.
Comprehensive Review with Detailed Rationales
| Grade A+
When a business erroneously records expenses as assets, it has violated the
measurement issue of:
A. communication
B. classification
C. valuation
D. recognition -✓✓B. classification
A dividend will reduce which of the following accounts?
A. Dividends
B. Retained Earnings
C. Common Stock
D. Accounts Payable -✓✓B. Retained Earnings
Liquidity -✓✓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 -✓✓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 -✓✓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 -✓✓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. -✓✓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. -✓✓A. advance their own
interests, those of the organization, or those of some other group.
Civil Rights Act -✓✓1964; Secured the rights of freedmen., it gave citizenship to
African- Americans
Equal Employment Opportunity -✓✓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 -✓✓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 -✓✓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. -✓✓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.
