PEREGRINE UPDATED EXAMS SCRIPT ALL
QUESTIONS AND ANSWERS SURE A+
✔✔PURCHASES RETURNS AND ALLOWANCES AND PURCHASE DISCOUNTS
ARE CLASSIFIED AS WHICH OF THE FOLLOWING ON THE INCOME STATEMENT?
- ✔✔CONTRA-COST ACCOUNTS
✔✔THE LAST STEP IN PREPARING A WORKSHEET IS WHICH OF THE
FOLLOWING? - ✔✔TOTAL THE INCOME STATEMENT AND BALANCE SHEET
ITEMS TO COMPUTE NET INCOME (LOSS)
✔✔Mission Statement vs Vision - ✔✔A MISSION STATEMENT DEFINES THE
COMPANY'S BUSINESS, ITS OBJECTIVES AND ITS APPROACH TO REACH
THOSE OBJECTIVES. A VISION STATEMENT DESCRIBES THE DESIRED FUTURE
POSITION OF THE COMPANY. ELEMENTS OF MISSION AND VISION
STATEMENTS ARE OFTEN COMBINED TO PROVIDE A STATEMENT OF THE
COMPANY'S PURPOSES, GOALS AND VALUES. HOWEVER, SOMETIMES THE
TWO TERMS ARE USED INTERCHANGEABLY.
✔✔Corporation Structure - ✔✔A BOARD OF DIRECTORS; OFFICERS; EMPLOYEES;
SHAREHOLDERS/OWNERS
AN INTERNAL CONFIGURATION OF THE FUNCTIONAL AREAS OF A BUSINESS
, ✔✔CORPORATE GOVERNANCE - ✔✔IT ESSENTIALLY INVOLVES BALANCING
THE INTERESTS OF A COMPANY'S MANY STAKEHOLDERS, SUCH AS
SHAREHOLDERS, MANAGEMENT, CUSTOMERS, SUPPLIERS, FINANCIERS,
GOVERNMENT AND THE COMMUNITY
IT ENCOMPASSES PRACTICALLY EVERY SPHERE OF MANAGEMENT, FROM
ACTION PLANS AND INTERNAL CONTROLS TO PERFORMANCE MEASUREMENT
AND CORPORATE DISCLOSURE.
✔✔GDP Calculation - ✔✔THE FORMULA FOR GDP IS: GDP = C + I + G + (EX -IM),
WHERE "C" EQUALS SPENDING BY CONSUMERS, "I" EQUALS INVESTMENT BY
BUSINESSES, "G" EQUALS GOVERNMENT SPENDING AND "(EX -IM)" EQUALS
NET EXPORTS, THAT IS, THE VALUE OF EXPORTSMINUSIMPORTS.
✔✔GROSS DOMESTIC PRODUCT (GDP) - ✔✔IS ONE OF THE PRIMARY
INDICATORS USED TO GAUGE THE HEALTH OF A COUNTRY'S ECONOMY. IT
REPRESENTS THE TOTAL DOLLAR VALUE OF ALL GOODS AND SERVICES
PRODUCED OVER A SPECIFIC TIME PERIOD, OFTEN REFERRED TO AS THE
SIZE OF THE ECONOMY
ANALYSIS: GDP GROWTH RATE IS THE GROWTH IN GDP FROM QUARTER TO
QUARTER.GDP PER CAPITA MEASURES GDP PER PERSON AND IS A GREAT
WAY TO COMPARE GDP DATA BETWEEN VARIOUS COUNTRIES.
✔✔Inflation - ✔✔IS DEFINED AS A SUSTAINED INCREASE IN THE GENERAL
LEVEL OF PRICES FOR GOODS AND SERVICES IN A COUNTY, AND IS
MEASURED AS AN ANNUAL PERCENTAGE CHANGE. UNDER CONDITIONS OF
INFLATION, THE PRICES OF THINGS RISE OVER TIME.
✔✔Recession - ✔✔IS A SIGNIFICANT DECLINE IN ECONOMIC ACTIVITY THAT
GOES ON FOR MORE THAN A FEW MONTHS. IT IS VISIBLE IN INDUSTRIAL
PRODUCTION, EMPLOYMENT, REAL INCOME AND WHOLESALE-RETAIL TRADE.
✔✔International Trade - ✔✔IS THE EXCHANGE OF CAPITAL, GOODS, AND
SERVICES ACROSS INTERNATIONAL BORDERS OR TERRITORIES. IN MOST
COUNTRIES, SUCH TRADE REPRESENTS A SIGNIFICANT SHARE OF GROSS
DOMESTIC PRODUCT (GDP).
✔✔MICROECONOMIC TRENDS - ✔✔ARE PATTERNS OF MOVEMENTS OR
CHANGES IN ECONOMIC FACTORS SUCH AS CONSUMER, HOUSEHOLD, OR
FIRMS' INCOME, SAVINGS, DEBT, AND EXPENDITURE.
✔✔MICROECONOMIC ANALYSIS - ✔✔ATTEMPTS TO EXPLAIN THE BEHAVIOR OF
INDIVIDUALS AND ORGANIZATIONS IN A GIVEN ECONOMY.
QUESTIONS AND ANSWERS SURE A+
✔✔PURCHASES RETURNS AND ALLOWANCES AND PURCHASE DISCOUNTS
ARE CLASSIFIED AS WHICH OF THE FOLLOWING ON THE INCOME STATEMENT?
- ✔✔CONTRA-COST ACCOUNTS
✔✔THE LAST STEP IN PREPARING A WORKSHEET IS WHICH OF THE
FOLLOWING? - ✔✔TOTAL THE INCOME STATEMENT AND BALANCE SHEET
ITEMS TO COMPUTE NET INCOME (LOSS)
✔✔Mission Statement vs Vision - ✔✔A MISSION STATEMENT DEFINES THE
COMPANY'S BUSINESS, ITS OBJECTIVES AND ITS APPROACH TO REACH
THOSE OBJECTIVES. A VISION STATEMENT DESCRIBES THE DESIRED FUTURE
POSITION OF THE COMPANY. ELEMENTS OF MISSION AND VISION
STATEMENTS ARE OFTEN COMBINED TO PROVIDE A STATEMENT OF THE
COMPANY'S PURPOSES, GOALS AND VALUES. HOWEVER, SOMETIMES THE
TWO TERMS ARE USED INTERCHANGEABLY.
✔✔Corporation Structure - ✔✔A BOARD OF DIRECTORS; OFFICERS; EMPLOYEES;
SHAREHOLDERS/OWNERS
AN INTERNAL CONFIGURATION OF THE FUNCTIONAL AREAS OF A BUSINESS
, ✔✔CORPORATE GOVERNANCE - ✔✔IT ESSENTIALLY INVOLVES BALANCING
THE INTERESTS OF A COMPANY'S MANY STAKEHOLDERS, SUCH AS
SHAREHOLDERS, MANAGEMENT, CUSTOMERS, SUPPLIERS, FINANCIERS,
GOVERNMENT AND THE COMMUNITY
IT ENCOMPASSES PRACTICALLY EVERY SPHERE OF MANAGEMENT, FROM
ACTION PLANS AND INTERNAL CONTROLS TO PERFORMANCE MEASUREMENT
AND CORPORATE DISCLOSURE.
✔✔GDP Calculation - ✔✔THE FORMULA FOR GDP IS: GDP = C + I + G + (EX -IM),
WHERE "C" EQUALS SPENDING BY CONSUMERS, "I" EQUALS INVESTMENT BY
BUSINESSES, "G" EQUALS GOVERNMENT SPENDING AND "(EX -IM)" EQUALS
NET EXPORTS, THAT IS, THE VALUE OF EXPORTSMINUSIMPORTS.
✔✔GROSS DOMESTIC PRODUCT (GDP) - ✔✔IS ONE OF THE PRIMARY
INDICATORS USED TO GAUGE THE HEALTH OF A COUNTRY'S ECONOMY. IT
REPRESENTS THE TOTAL DOLLAR VALUE OF ALL GOODS AND SERVICES
PRODUCED OVER A SPECIFIC TIME PERIOD, OFTEN REFERRED TO AS THE
SIZE OF THE ECONOMY
ANALYSIS: GDP GROWTH RATE IS THE GROWTH IN GDP FROM QUARTER TO
QUARTER.GDP PER CAPITA MEASURES GDP PER PERSON AND IS A GREAT
WAY TO COMPARE GDP DATA BETWEEN VARIOUS COUNTRIES.
✔✔Inflation - ✔✔IS DEFINED AS A SUSTAINED INCREASE IN THE GENERAL
LEVEL OF PRICES FOR GOODS AND SERVICES IN A COUNTY, AND IS
MEASURED AS AN ANNUAL PERCENTAGE CHANGE. UNDER CONDITIONS OF
INFLATION, THE PRICES OF THINGS RISE OVER TIME.
✔✔Recession - ✔✔IS A SIGNIFICANT DECLINE IN ECONOMIC ACTIVITY THAT
GOES ON FOR MORE THAN A FEW MONTHS. IT IS VISIBLE IN INDUSTRIAL
PRODUCTION, EMPLOYMENT, REAL INCOME AND WHOLESALE-RETAIL TRADE.
✔✔International Trade - ✔✔IS THE EXCHANGE OF CAPITAL, GOODS, AND
SERVICES ACROSS INTERNATIONAL BORDERS OR TERRITORIES. IN MOST
COUNTRIES, SUCH TRADE REPRESENTS A SIGNIFICANT SHARE OF GROSS
DOMESTIC PRODUCT (GDP).
✔✔MICROECONOMIC TRENDS - ✔✔ARE PATTERNS OF MOVEMENTS OR
CHANGES IN ECONOMIC FACTORS SUCH AS CONSUMER, HOUSEHOLD, OR
FIRMS' INCOME, SAVINGS, DEBT, AND EXPENDITURE.
✔✔MICROECONOMIC ANALYSIS - ✔✔ATTEMPTS TO EXPLAIN THE BEHAVIOR OF
INDIVIDUALS AND ORGANIZATIONS IN A GIVEN ECONOMY.
