7/19/26, 11:43 AM Peregrine Exam, Peregrine Exam, Business Administration Master Exam Overview, MBA 745: Economics, MBA-746 Business An…
Peregrine Exam, Peregrine Exam, Business Save
Administration Master Exam Overview, MBA
745: Economics, MBA-746 Business
Analytics, Peregrine MBA Assessment
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Terms in this set (515)
What is a general ledger? A general ledger account is an account or record used to sort, store and
summarize a company's transactions.
asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land,
and Equipment
liability accounts including Notes Payable, Accounts Payable, Accrued Expenses
Payable, and Customer Deposits
stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury
Stock, and Accumulated Other Comprehensive Income
What is the difference between accounts payable and Accounts payable is a current liability account in which a company records the
accounts receivable? amounts it owes to suppliers or vendors for goods or services that it received on
credit.
Accounts receivable is a current asset account in which a company records the
amounts it has a right to collect from customers who received goods or services
on credit.
What is the cost of goods sold? The cost of goods sold is the cost of the products that a retailer, distributor, or
manufacturer has sold.
What is owner's equity? Owner's equity is one of the three main sections of a sole proprietorship's balance
sheet and one of the components of the accounting equation: Assets = Liabilities +
Owner's Equity.
https://quizlet.com/1157008088/peregrine-exam-peregrine-exam-business-administration-master-exam-overview-mba-745-economics-mba-746-busi… 1/10
, 7/19/26, 11:43 AM Peregrine Exam, Peregrine Exam, Business Administration Master Exam Overview, MBA 745: Economics, MBA-746 Business An…
What is principles of accounting? Principles of accounting can also refer to the basic or fundamental accounting
principles: cost principles, matching principles, full disclosure principles,
materiality principles, going concern principles, economic entity principles, and
so on. In this context, principles of accounting refers to the broad underlying
concepts which guide accountants when preparing financial statements.
What is equity? Equity can indicate an ownership interest in a business, such as stockholders'
equity or owner's equity.
Equity can mean an owner's interest in a personal asset. For example, the owner of
a $200,000 house that has a mortgage loan of $75,000 is said to have $125,000 of
equity in the house.
What is meant by reconciling an account? Reconciling an account is likely to mean proving or documenting that an account
balance is correct.
What is included in cash and cash equivalents? In accounting, a company's cash includes the following:
currency and coins
checks received from customers but not yet deposited
checking accounts
petty cash
Cash equivalents are short-term, highly liquid investments with a maturity date
that was 3 months or less at the time of purchase.
money market accounts
U.S. Treasury Bills
commercial paper
What is the difference between an implicit cost and an An implicit cost is present but it is not initially shown or reported as a separate
explicit cost? cost.
An explicit cost is a cost that is present and it is clearly shown or reported as a
separate cost.
What is the difference between stocks and bonds? Stocks, or shares of capital stock, represent an ownership interest in a
corporation. Every corporation has common stock.
Bonds are a form of long-term debt in which the issuing corporation promises to
pay the principal amount at a specified maturity date.
AN INCREASE TO WHICH OF THE FOLLOWING Client Fees
ACCOUNTS WILL INCREASE OWNERS' EQUITY?
IN TIMES OF RISING PRICES, THE INVENTORY COST LIFO (LIFO is the acronym for last-in, first-out, which is a cost flow assumption
METHOD THAT WILL YIELD THE LOWEST NET INCOME often used by U.S. corporations in moving costs from inventory to the cost of
IS: goods sold.
Example: Assume that a corporation uses LIFO and has three units of a product in
its inventory. Due to its supplier raising its prices, the corporation purchased the
items at different costs and in the following sequence: $40, $44, and $46. The
corporation ships the oldest item (the one purchased for $40) to a customer at a
selling price of $60. However, under the LIFO cost flow assumption the company
reports its cost of goods sold at $46 (the latest cost) and reports a gross profit of
$14. (The costs of $40 and $44 remain in inventory.)
https://quizlet.com/1157008088/peregrine-exam-peregrine-exam-business-administration-master-exam-overview-mba-745-economics-mba-746-busi… 2/10
Peregrine Exam, Peregrine Exam, Business Save
Administration Master Exam Overview, MBA
745: Economics, MBA-746 Business
Analytics, Peregrine MBA Assessment
Leave the first rating
Students also studied
Flashcard sets Study guides
Peregrine Exam Peregrine MBA Assessment Peregrine Exam Peregr
69 terms 165 terms 50 terms Teacher
houston_fogg Preview Anne_Metcalf Preview ashlynnekaylee Preview quiz
Terms in this set (515)
What is a general ledger? A general ledger account is an account or record used to sort, store and
summarize a company's transactions.
asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land,
and Equipment
liability accounts including Notes Payable, Accounts Payable, Accrued Expenses
Payable, and Customer Deposits
stockholders' equity accounts such as Common Stock, Retained Earnings, Treasury
Stock, and Accumulated Other Comprehensive Income
What is the difference between accounts payable and Accounts payable is a current liability account in which a company records the
accounts receivable? amounts it owes to suppliers or vendors for goods or services that it received on
credit.
Accounts receivable is a current asset account in which a company records the
amounts it has a right to collect from customers who received goods or services
on credit.
What is the cost of goods sold? The cost of goods sold is the cost of the products that a retailer, distributor, or
manufacturer has sold.
What is owner's equity? Owner's equity is one of the three main sections of a sole proprietorship's balance
sheet and one of the components of the accounting equation: Assets = Liabilities +
Owner's Equity.
https://quizlet.com/1157008088/peregrine-exam-peregrine-exam-business-administration-master-exam-overview-mba-745-economics-mba-746-busi… 1/10
, 7/19/26, 11:43 AM Peregrine Exam, Peregrine Exam, Business Administration Master Exam Overview, MBA 745: Economics, MBA-746 Business An…
What is principles of accounting? Principles of accounting can also refer to the basic or fundamental accounting
principles: cost principles, matching principles, full disclosure principles,
materiality principles, going concern principles, economic entity principles, and
so on. In this context, principles of accounting refers to the broad underlying
concepts which guide accountants when preparing financial statements.
What is equity? Equity can indicate an ownership interest in a business, such as stockholders'
equity or owner's equity.
Equity can mean an owner's interest in a personal asset. For example, the owner of
a $200,000 house that has a mortgage loan of $75,000 is said to have $125,000 of
equity in the house.
What is meant by reconciling an account? Reconciling an account is likely to mean proving or documenting that an account
balance is correct.
What is included in cash and cash equivalents? In accounting, a company's cash includes the following:
currency and coins
checks received from customers but not yet deposited
checking accounts
petty cash
Cash equivalents are short-term, highly liquid investments with a maturity date
that was 3 months or less at the time of purchase.
money market accounts
U.S. Treasury Bills
commercial paper
What is the difference between an implicit cost and an An implicit cost is present but it is not initially shown or reported as a separate
explicit cost? cost.
An explicit cost is a cost that is present and it is clearly shown or reported as a
separate cost.
What is the difference between stocks and bonds? Stocks, or shares of capital stock, represent an ownership interest in a
corporation. Every corporation has common stock.
Bonds are a form of long-term debt in which the issuing corporation promises to
pay the principal amount at a specified maturity date.
AN INCREASE TO WHICH OF THE FOLLOWING Client Fees
ACCOUNTS WILL INCREASE OWNERS' EQUITY?
IN TIMES OF RISING PRICES, THE INVENTORY COST LIFO (LIFO is the acronym for last-in, first-out, which is a cost flow assumption
METHOD THAT WILL YIELD THE LOWEST NET INCOME often used by U.S. corporations in moving costs from inventory to the cost of
IS: goods sold.
Example: Assume that a corporation uses LIFO and has three units of a product in
its inventory. Due to its supplier raising its prices, the corporation purchased the
items at different costs and in the following sequence: $40, $44, and $46. The
corporation ships the oldest item (the one purchased for $40) to a customer at a
selling price of $60. However, under the LIFO cost flow assumption the company
reports its cost of goods sold at $46 (the latest cost) and reports a gross profit of
$14. (The costs of $40 and $44 remain in inventory.)
https://quizlet.com/1157008088/peregrine-exam-peregrine-exam-business-administration-master-exam-overview-mba-745-economics-mba-746-busi… 2/10
