ACCOUNTING PEREGRINE
COMPREHENSIVE EXAM 2026 QUESTIONS
AND CORRECT SOLUTIONS GRADED A+
⩥ Analyses regarding the market: Answer: -Price-earnings Ratio
-Dividends per Share
-Dividend Yield
⩥ Percentage analyses, ratios, turnovers, and other measures of financial
position and operating results are useful analytical measures and are all
you need in assessing a business's past performance and predicting its
future
A. True
B. False. Answer: B. False
They are helpful, but are not a substitute for sound judgment. In
selecting and interpreting analytical measures, conditions peculiar to a
business or its industry should be considered as well as the influence of
the general economic and business environment.
⩥ Companies use _______________ to help evaluate long-term
investments and compare alternatives. Answer: capital investment
analysis, capital investment
, ⩥ Estimated Avg. Annual Income ÷ Average Investment =
___________. Answer: Average Rate of Return
⩥ Initial Cash Investment ÷ Annual Net Cash Flow = ___________.
Answer: Payback Period
⩥ Factors that Complicate Capital Investment Analysis. Answer: -
Income tax
-Proposals with unequal lives
-Lease versus capital investment
-Uncertainty
-Changes in price levels
-Qualitative considerations
⩥ Basic Elements of an Accounting System:. Answer: -Standards for
determining what, when, and the amount that should be recorded for
economic events
-A framework for preparing financial statements
-Controls to determine whether errors may have arisen in the recording
process
⩥ Although financial statements can be prepared on a cash basis,
publicly traded companies must use ________, in which business
COMPREHENSIVE EXAM 2026 QUESTIONS
AND CORRECT SOLUTIONS GRADED A+
⩥ Analyses regarding the market: Answer: -Price-earnings Ratio
-Dividends per Share
-Dividend Yield
⩥ Percentage analyses, ratios, turnovers, and other measures of financial
position and operating results are useful analytical measures and are all
you need in assessing a business's past performance and predicting its
future
A. True
B. False. Answer: B. False
They are helpful, but are not a substitute for sound judgment. In
selecting and interpreting analytical measures, conditions peculiar to a
business or its industry should be considered as well as the influence of
the general economic and business environment.
⩥ Companies use _______________ to help evaluate long-term
investments and compare alternatives. Answer: capital investment
analysis, capital investment
, ⩥ Estimated Avg. Annual Income ÷ Average Investment =
___________. Answer: Average Rate of Return
⩥ Initial Cash Investment ÷ Annual Net Cash Flow = ___________.
Answer: Payback Period
⩥ Factors that Complicate Capital Investment Analysis. Answer: -
Income tax
-Proposals with unequal lives
-Lease versus capital investment
-Uncertainty
-Changes in price levels
-Qualitative considerations
⩥ Basic Elements of an Accounting System:. Answer: -Standards for
determining what, when, and the amount that should be recorded for
economic events
-A framework for preparing financial statements
-Controls to determine whether errors may have arisen in the recording
process
⩥ Although financial statements can be prepared on a cash basis,
publicly traded companies must use ________, in which business
