PEREGRINE CORE MAIN EXAMS ALL QUESTIONS
AND ANSWERS SURE A+
✔✔Cash ratio - ✔✔Compares the amount of cash and investments to short-term
liablilites.
Excludes any assets that might not be able to convert to cash, especially inventory.
✔✔Quick ratio - ✔✔same as cash ratio but includes accounts receivable as an asset.
Avoids inventory
✔✔Current ratio - ✔✔compares all current assets to all current liabilities. Includes
inventory
✔✔Comparisons - ✔✔Compare companies financial performance to similar firms in the
industry.
✔✔trend line - ✔✔Used to predict the direction of future financial performance
✔✔operational efficiency - ✔✔Determine the degree of efficiency in management of
assets and liabilities
, ✔✔Operating Cycle - ✔✔The average time required to purchase inventory, sell it on
account, and then collect cash from customers—that is, go from cash to cash.
✔✔Day Sales in Inventory - ✔✔365/inventory turnover
✔✔Average Collection Period - ✔✔365/accounts receivable turnover ratio
✔✔DEALS - ✔✔Dividends, expenses, assets and losses
✔✔GIRLS - ✔✔Gains, income, revenues, liabilities and stockholders' equity.
✔✔SOX Act - ✔✔Requires managers and auditors of public companies to document
and certify the system of internal control
✔✔Principle of SOX act - ✔✔Corporate responsibility, increased criminal punishment,
accounting regulation, new protections
✔✔annual report - ✔✔a yearly statement of the financial condition, progress, and
expectations of an organization
✔✔Some annual reports are due every _____ - ✔✔year
✔✔Some annual reports are due every ______years - ✔✔2
✔✔Some annual reports are due every_______years - ✔✔10
✔✔quarterly report - ✔✔Brief unaudited report for quarter normally containing summary
income statement and balance sheet
✔✔publicly traded companies - ✔✔must file their quarterly reports on Form 10-Q with
the SEC
✔✔Quarterly reports must include - ✔✔Executive summary, highlights, future goals and
objectives
✔✔Cost Approach - ✔✔The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation.
✔✔Income Approach - ✔✔A method of computing GDP that measures the income-
wages, rents, interest, and profits-received by all factors of production in producing final
goods and services.
AND ANSWERS SURE A+
✔✔Cash ratio - ✔✔Compares the amount of cash and investments to short-term
liablilites.
Excludes any assets that might not be able to convert to cash, especially inventory.
✔✔Quick ratio - ✔✔same as cash ratio but includes accounts receivable as an asset.
Avoids inventory
✔✔Current ratio - ✔✔compares all current assets to all current liabilities. Includes
inventory
✔✔Comparisons - ✔✔Compare companies financial performance to similar firms in the
industry.
✔✔trend line - ✔✔Used to predict the direction of future financial performance
✔✔operational efficiency - ✔✔Determine the degree of efficiency in management of
assets and liabilities
, ✔✔Operating Cycle - ✔✔The average time required to purchase inventory, sell it on
account, and then collect cash from customers—that is, go from cash to cash.
✔✔Day Sales in Inventory - ✔✔365/inventory turnover
✔✔Average Collection Period - ✔✔365/accounts receivable turnover ratio
✔✔DEALS - ✔✔Dividends, expenses, assets and losses
✔✔GIRLS - ✔✔Gains, income, revenues, liabilities and stockholders' equity.
✔✔SOX Act - ✔✔Requires managers and auditors of public companies to document
and certify the system of internal control
✔✔Principle of SOX act - ✔✔Corporate responsibility, increased criminal punishment,
accounting regulation, new protections
✔✔annual report - ✔✔a yearly statement of the financial condition, progress, and
expectations of an organization
✔✔Some annual reports are due every _____ - ✔✔year
✔✔Some annual reports are due every ______years - ✔✔2
✔✔Some annual reports are due every_______years - ✔✔10
✔✔quarterly report - ✔✔Brief unaudited report for quarter normally containing summary
income statement and balance sheet
✔✔publicly traded companies - ✔✔must file their quarterly reports on Form 10-Q with
the SEC
✔✔Quarterly reports must include - ✔✔Executive summary, highlights, future goals and
objectives
✔✔Cost Approach - ✔✔The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation.
✔✔Income Approach - ✔✔A method of computing GDP that measures the income-
wages, rents, interest, and profits-received by all factors of production in producing final
goods and services.
