Study Guide for Peregrine Exam Questions and Answers 100% Updated

Study Guide for Peregrine Exam Questions and Answers 100% Updated


1. When the costs of supplies increase in an industry, the low cost
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leader
: is the only firm able to pay the higher prices and continue to earn aver
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age or above average returns
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2. Accounts Payable: current liability account in which a company records the amoun
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ts it owes to suppliers or vendors for goods or services that it recieved on credit
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3. accounts receivable: current asset account in which a company records the amou
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nts it has a right to collect from customers who received goods or services on credit
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4. what is the cost of goods sold?: the total cost of merchandise sold during a period
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5. owners equity: one of the three main sections of a sole proprietorship's balance sheet
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6. cash: includes the following: currency and coins, checks received from customers but n
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ot yet deposited, checking accounts, and petty cash
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7. cash equivalents: short- m m


term high liquidity investments with a maturity date that was 3 months or less at the time
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mof purchase. Ex) money market accounts, U.S. Treasury Bills, and commercial paper
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8. when a business erroneously records expenses as assets, it has violated the mea
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surement of : classification
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9. lying by omission involves intentionally: withholding material facts
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10. The Federal Highway Administration uses notice-and-comment rulemak-
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ming. this process begins with: the publication of a notice of proposed rulemaking
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11. one way human resource planning links to strategic planning is by provid-
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ming a set of inputs into the
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12. which of the following is not one of W. Edwards Deming's 14 points?: the only perf
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ormance standard is zero defectsm m m m


13. operating statement is another name for the m : Income Statement m m m m m m m m


14. Purchases, returns and allowances, and purchase discounts are classified as
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on the income statement: contra-cost accounts
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15. law of supply: states that the quantity of a good supplied (I.E. the amount owners o
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, r producers offer for sale) rises as the market price rises, and falls as the price falls
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16. population sampling: the process of taking a subset of subjects that is repre-
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msentative of the entire population. the sample must have sufficient size to warrant statis
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tical analysis m


17. what is principles of accounting: the broad underlying concepts which guide accoun
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tants when preparing financial statements
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18. what is equity?: it indicates an ownership interest in a business
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