Accounting Peregrine Exam Questions
And Answers Latest Update
Relevance - Correct Answer-The quality of information that indicates the information makes a
difference in a decision.
Reliability - Correct Answer-the quality of information that gives assurance that it is free of error
and bias
Comparability - Correct Answer-Ability to compare the accounting information of different
companies because they use the same accounting principles.
Consistency - Correct Answer-use of the same accounting principles and methods from year to
year within a company
Monetary Unit Assumption - Correct Answer-Only items that be expressed in money are
included in the accounting records
Economic Entity Assumption - Correct Answer-every economic entity can be separately
identified and accounted for
Time Period - Correct Answer-The life of a business is divided into meaningful time periods for
financial reporting
Going Concern Assumption - Correct Answer-Entity will continue to operate long enough to
recover the cost of its assets
, Revenue Recognition Principle - Correct Answer-a revenue should be recorded when a resource
has been earned
Matching - Correct Answer-Expenses are matched with related values in the same accounting
period
Cost Principle - Correct Answer-A principle that states that acquired assets and services should
be recorded at their actual cost.
Full Disclosure Principle - Correct Answer-A company reports details behind financial statements
that would impact users' decisions.
Materiality Constraint - Correct Answer-Whether an item was large enough to likely influence
the decision of investor or creditor
Cost-Benefit constraint - Correct Answer-only information with benefits of disclosures greater
than the costs of providing it need be disclosed
Conservatism Principle - Correct Answer-the approach of choosing an accounting method that
will least likely overstate assets and net income
Basic Financial Statements - Correct Answer-income statement, balance sheet, cash flow
statement
Assets - Correct Answer-resources owned by a business
current assets - Correct Answer-items that can or will be converted into cash within one year
And Answers Latest Update
Relevance - Correct Answer-The quality of information that indicates the information makes a
difference in a decision.
Reliability - Correct Answer-the quality of information that gives assurance that it is free of error
and bias
Comparability - Correct Answer-Ability to compare the accounting information of different
companies because they use the same accounting principles.
Consistency - Correct Answer-use of the same accounting principles and methods from year to
year within a company
Monetary Unit Assumption - Correct Answer-Only items that be expressed in money are
included in the accounting records
Economic Entity Assumption - Correct Answer-every economic entity can be separately
identified and accounted for
Time Period - Correct Answer-The life of a business is divided into meaningful time periods for
financial reporting
Going Concern Assumption - Correct Answer-Entity will continue to operate long enough to
recover the cost of its assets
, Revenue Recognition Principle - Correct Answer-a revenue should be recorded when a resource
has been earned
Matching - Correct Answer-Expenses are matched with related values in the same accounting
period
Cost Principle - Correct Answer-A principle that states that acquired assets and services should
be recorded at their actual cost.
Full Disclosure Principle - Correct Answer-A company reports details behind financial statements
that would impact users' decisions.
Materiality Constraint - Correct Answer-Whether an item was large enough to likely influence
the decision of investor or creditor
Cost-Benefit constraint - Correct Answer-only information with benefits of disclosures greater
than the costs of providing it need be disclosed
Conservatism Principle - Correct Answer-the approach of choosing an accounting method that
will least likely overstate assets and net income
Basic Financial Statements - Correct Answer-income statement, balance sheet, cash flow
statement
Assets - Correct Answer-resources owned by a business
current assets - Correct Answer-items that can or will be converted into cash within one year
