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