Foundations of Accounting for Peregrine
Global Services 2025/2026 Exam
Questions and Answers | 100% Solved
Financial statements - 🧠 ANSWER ✔✔provide information that is useful for
making investments and other economic decisions about business
Horizontal analysis - 🧠 ANSWER ✔✔Analysis of percentage increases and
decreases in financial statements across time.
The amount of each line item on the most recent statement is compared
with the related item on earlier statements, and expressed as a percentage
change
Vertical analysis - 🧠 ANSWER ✔✔An percentage analysis that is used to
show the relationship of each component to the total within a single
statement.
The balance sheet is analyzed by stating each asset item as a percent of
total assets. Each liability and stockholders equity item is stated as a
percent of total liabilities and stockholders equity.
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,Common side statements - 🧠 ANSWER ✔✔Horizontal and vertical analyses
are useful in assessing trends, in relationships and financial conditions, and
operations of a business
Common size income statements - 🧠 ANSWER ✔✔can compare to
businesses or more
Solvency and profitability - 🧠 ANSWER ✔✔The ability of a business to
repay its debts and earn income
Solvency analysis - 🧠 ANSWER ✔✔Focuses on the ability of a business to
pay, or otherwise satisfy its current and noncurrent liabilities
Current position analysis, working capital - 🧠 ANSWER ✔✔Using metrics to
assess a business, is ability to pay its current liabilities
Current ratio - 🧠 ANSWER ✔✔current assets divided by current liabilities
Quick ratio - 🧠 ANSWER ✔✔quick assets/current liabilities
Accounts Receivable analysis - 🧠 ANSWER ✔✔sales on account increase
accounts receivable, whereas collections from customers decrease
accounts receivable. It is desirable to collect receivables as promptly as
possible. The cash generated by prompt collections from customers may
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, be used to pay or avoid current liabilities and be used in operations for
purposes, such as purchasing merchandise in large quantities at lower
prices.
Accounts Receivable Turnover Ratio - 🧠 ANSWER ✔✔net credit
sales/average net accounts receivable
number of days' sales in receivables - 🧠 ANSWER ✔✔Average Accounts
Receivable / Average Daily Sales
Inventory turnover ratio - 🧠 ANSWER ✔✔cost of goods sold/average
inventory
Ratio fixed assets to long-term liabilities - 🧠 ANSWER ✔✔ratio of fixed
assets to long-term liabilities is a solvency measure that indicates the
margin of safety for node holders and bond holders. It also indicates the
ability of a business to borrow additional funds on a long-term basis.
Ratio of liabilities to stockholders equity - 🧠 ANSWER ✔✔Claims against
the total assets of a business are divided into two groups, one claims of
creditors and two claims of owners. The relationship between the total
claims of the creditors and owners is a solvency measure that indicates the
margin of safety for creditors.
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Global Services 2025/2026 Exam
Questions and Answers | 100% Solved
Financial statements - 🧠 ANSWER ✔✔provide information that is useful for
making investments and other economic decisions about business
Horizontal analysis - 🧠 ANSWER ✔✔Analysis of percentage increases and
decreases in financial statements across time.
The amount of each line item on the most recent statement is compared
with the related item on earlier statements, and expressed as a percentage
change
Vertical analysis - 🧠 ANSWER ✔✔An percentage analysis that is used to
show the relationship of each component to the total within a single
statement.
The balance sheet is analyzed by stating each asset item as a percent of
total assets. Each liability and stockholders equity item is stated as a
percent of total liabilities and stockholders equity.
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,Common side statements - 🧠 ANSWER ✔✔Horizontal and vertical analyses
are useful in assessing trends, in relationships and financial conditions, and
operations of a business
Common size income statements - 🧠 ANSWER ✔✔can compare to
businesses or more
Solvency and profitability - 🧠 ANSWER ✔✔The ability of a business to
repay its debts and earn income
Solvency analysis - 🧠 ANSWER ✔✔Focuses on the ability of a business to
pay, or otherwise satisfy its current and noncurrent liabilities
Current position analysis, working capital - 🧠 ANSWER ✔✔Using metrics to
assess a business, is ability to pay its current liabilities
Current ratio - 🧠 ANSWER ✔✔current assets divided by current liabilities
Quick ratio - 🧠 ANSWER ✔✔quick assets/current liabilities
Accounts Receivable analysis - 🧠 ANSWER ✔✔sales on account increase
accounts receivable, whereas collections from customers decrease
accounts receivable. It is desirable to collect receivables as promptly as
possible. The cash generated by prompt collections from customers may
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, be used to pay or avoid current liabilities and be used in operations for
purposes, such as purchasing merchandise in large quantities at lower
prices.
Accounts Receivable Turnover Ratio - 🧠 ANSWER ✔✔net credit
sales/average net accounts receivable
number of days' sales in receivables - 🧠 ANSWER ✔✔Average Accounts
Receivable / Average Daily Sales
Inventory turnover ratio - 🧠 ANSWER ✔✔cost of goods sold/average
inventory
Ratio fixed assets to long-term liabilities - 🧠 ANSWER ✔✔ratio of fixed
assets to long-term liabilities is a solvency measure that indicates the
margin of safety for node holders and bond holders. It also indicates the
ability of a business to borrow additional funds on a long-term basis.
Ratio of liabilities to stockholders equity - 🧠 ANSWER ✔✔Claims against
the total assets of a business are divided into two groups, one claims of
creditors and two claims of owners. The relationship between the total
claims of the creditors and owners is a solvency measure that indicates the
margin of safety for creditors.
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
