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PEREGRINE EXAM 2026
2026/2027 ACTUAL QUESTIONS
WITH VERIFIED ANSWERS.
what is a general ledger? - 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? - 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.
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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? - 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? - 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? - 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? - answer-equity can indicate an ownership
interest in a business, such as stockholders' equity or owner's
equity.
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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? - 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? - 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
PEREGRINE EXAM 2026
2026/2027 ACTUAL QUESTIONS
WITH VERIFIED ANSWERS.
what is a general ledger? - 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? - 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.
,2 | Page
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? - 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? - 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? - 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? - answer-equity can indicate an ownership
interest in a business, such as stockholders' equity or owner's
equity.
, 3 | Page
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? - 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? - 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
