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PEREGRINE FOUNDATIONS OF QUANTITIVE
ANALYSIS, AND BUSINESS STATISTICS NEWEST
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
True or false: The one fixed asset that is not
depreciated is land because it seldom declines in value.
- .....ANSWER ...✔✔ True
__________ liabilities are those due within one year. -
.....ANSWER ...✔✔ Current
__________-__________ __________ liabilities are
due after more than a year, and may include bonds,
mortgages, and long-term loans. - .....ANSWER ...✔✔
Long-term debt
Name the three types of accounts listed as current
liabilities on balance sheets. - .....ANSWER ...✔✔ (1)
Accounts Payable
(2) Notes Payable
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(3) Accrued Expenses
Accounts payable - .....ANSWER ...✔✔ The amounts
owed for credit purchases by a firm
Notes payable - .....ANSWER ...✔✔ Outstanding
short-term loans, typically from commercial banks
Accrued expenses - .....ANSWER ...✔✔ Costs that
have been incurred by a firm which have not yet been
paid; examples of accruals include taxes owed to the
government and unpaid wages
The __________ __________ section of a balance
sheet provides information about the claims against a
firm held by investors who own preferred and common
shares. - .....ANSWER ...✔✔ Stockholders' equity
The Stockholders' equity section of the balance sheet is
reflected in four types of accounts. These include
__________ __________, __________ __________,
__________-__________-__________ __________
___________ __________ __________, and
__________ __________. - .....ANSWER ...✔✔ (1)
preferred stock
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(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from
the sale of preferred stock. - .....ANSWER ...✔✔
Preferred stock
__________-__________-__________ __________
__________ __________ __________ equals the
number of shares outstanding multiplied by the original
selling price of the shares, net of the par value. -
.....ANSWER ...✔✔ Paid-in-capital in excess of par
__________ __________ equals the number of
outstanding common shares multiplied by the par value
per share. - .....ANSWER ...✔✔ Common stock
__________ __________ (often $1) is an artifact of
earlier pre-computer accounting methods used to track
the number of outstanding shares. It has no relation to
the actual value of the shares. - .....ANSWER ...✔✔
Par value
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__________ __________ are the cumulative total of the
earnings that the firm has reinvested in its assets and
operations since its inception. - .....ANSWER ...✔✔
Retained earnings
The combined value of __________ __________ and
__________-__________-__________ equals the
proceeds the firm received when it originally sold shares
to investors (including initial public offerings and rights
offerings). - .....ANSWER ...✔✔ common stock, paid-
in-capital
The __________ __________ entry on a balance sheet
records the value of common shares that a firm currently
holds in reserve. - .....ANSWER ...✔✔ treasury stock
The __________ __________ __________ __________
provides a summary of what cash has gone into and out
of a firm because of its operations, investments, and
financing activities during a year. It isolates the firm's
operating, investment, and financing cash flows and
reconciles them with changes in its cash and marketable
securities during the year. - .....ANSWER ...✔✔
statement of cash flows
PEREGRINE FOUNDATIONS OF QUANTITIVE
ANALYSIS, AND BUSINESS STATISTICS NEWEST
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
True or false: The one fixed asset that is not
depreciated is land because it seldom declines in value.
- .....ANSWER ...✔✔ True
__________ liabilities are those due within one year. -
.....ANSWER ...✔✔ Current
__________-__________ __________ liabilities are
due after more than a year, and may include bonds,
mortgages, and long-term loans. - .....ANSWER ...✔✔
Long-term debt
Name the three types of accounts listed as current
liabilities on balance sheets. - .....ANSWER ...✔✔ (1)
Accounts Payable
(2) Notes Payable
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(3) Accrued Expenses
Accounts payable - .....ANSWER ...✔✔ The amounts
owed for credit purchases by a firm
Notes payable - .....ANSWER ...✔✔ Outstanding
short-term loans, typically from commercial banks
Accrued expenses - .....ANSWER ...✔✔ Costs that
have been incurred by a firm which have not yet been
paid; examples of accruals include taxes owed to the
government and unpaid wages
The __________ __________ section of a balance
sheet provides information about the claims against a
firm held by investors who own preferred and common
shares. - .....ANSWER ...✔✔ Stockholders' equity
The Stockholders' equity section of the balance sheet is
reflected in four types of accounts. These include
__________ __________, __________ __________,
__________-__________-__________ __________
___________ __________ __________, and
__________ __________. - .....ANSWER ...✔✔ (1)
preferred stock
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(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from
the sale of preferred stock. - .....ANSWER ...✔✔
Preferred stock
__________-__________-__________ __________
__________ __________ __________ equals the
number of shares outstanding multiplied by the original
selling price of the shares, net of the par value. -
.....ANSWER ...✔✔ Paid-in-capital in excess of par
__________ __________ equals the number of
outstanding common shares multiplied by the par value
per share. - .....ANSWER ...✔✔ Common stock
__________ __________ (often $1) is an artifact of
earlier pre-computer accounting methods used to track
the number of outstanding shares. It has no relation to
the actual value of the shares. - .....ANSWER ...✔✔
Par value
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__________ __________ are the cumulative total of the
earnings that the firm has reinvested in its assets and
operations since its inception. - .....ANSWER ...✔✔
Retained earnings
The combined value of __________ __________ and
__________-__________-__________ equals the
proceeds the firm received when it originally sold shares
to investors (including initial public offerings and rights
offerings). - .....ANSWER ...✔✔ common stock, paid-
in-capital
The __________ __________ entry on a balance sheet
records the value of common shares that a firm currently
holds in reserve. - .....ANSWER ...✔✔ treasury stock
The __________ __________ __________ __________
provides a summary of what cash has gone into and out
of a firm because of its operations, investments, and
financing activities during a year. It isolates the firm's
operating, investment, and financing cash flows and
reconciles them with changes in its cash and marketable
securities during the year. - .....ANSWER ...✔✔
statement of cash flows
