PEREGRINE EXAM QUESTIONS AND ANSWERS
When the costs of supplies increase in an industry, the low cost leader_____ -
answers- is the only firm able to pay the higher prices and continue to earn average or
above average returns
Accounts payable - answers- current liability account in which a company records the
amounts it owes to suppliers or vendors for goods or services that it recieved on credit
Accounts receivable - answers- 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? - answers- the total cost of merchandise sold during a
period
Owners equity - answers- one of the three main sections of a sole proprietorship's
balance sheet
Cash - answers- includes the following: currency and coins, checks received from
customers but not yet deposited, checking accounts, and petty cash
Operating statement is another name for the ______ - answers- income statement
Purchases, returns and allowances, and purchase discounts are classified as _______
on the income statement - answers- contra-cost accounts
Law of supply - answers- states that the quantity of a good supplied (i.e. the amount
owners or producers offer for sale) rises as the market price rises, and falls as the price
falls
Population sampling - answers- the process of taking a subset of subjects that is
representative of the entire population. The sample must have sufficient size to warrant
statistical analysis
What is principles of accounting - answers- the broad underlying concepts which guide
accountants when preparing financial statements
What is equity? - answers- it indicates an ownership interest in a business
What is meant by reconciling an account? - answers- it is likely to mean proving or
documenting that an account balance is correct
Implicit cost - answers- any cost that has already occurred but not necessarily shown or
reported as a separate expense
, Explicit cost - answers- normal business costs that appear in the general ledger and
directly affect a company's profitability
Stocks - answers- shares of ownership in a company
Bonds - answers- certificates of debt that carry a promise to buy back the bonds at a
higher price
An increase in ______ will increase owners equity - answers- client fees
A dividend will reduce ______ - answers- retained earnings
Conflicts of interest exist when employees must choose whether to - answers- advance
their own interests, those of the organization, or those of some other gtoup
Tqm is most helpful to firms following the ______ business strategy - answers-
integrated cost-leadership differentiation
Which of the following is not considered an extrinsic motivator in herzberg's two-factor
theory - answers- work itself
Which of the following is not one of the process motivation theories? - answers-
acquired needs theory
The largest component of gdp is ______ - answers- consumption
In economics, firms are assumed to ______ - answers- maximize profits
Cash equivalents - answers- short-term high liquidity investments with a maturity date
that was 3 months or less at the time of purchase. Ex) money market accounts, u.s.
treasury bills, and commercial paper
When a business erroneously records expenses as assets, it has violated the
measurement of _____ - answers- classification
Lying by omission involves intentionally - answers- withholding material facts
The federal highway administration uses notice-and-comment rulemaking. This process
begins with - answers- the publication of a notice of proposed rulemaking
One way human resource planning links to strategic planning is by providing a set of
inputs into the ______ - answers- strategy formulation process
Which of the following is not one of w. Edwards deming's 14 points? - answers- the only
performance standard is zero defects
When the costs of supplies increase in an industry, the low cost leader_____ -
answers- is the only firm able to pay the higher prices and continue to earn average or
above average returns
Accounts payable - answers- current liability account in which a company records the
amounts it owes to suppliers or vendors for goods or services that it recieved on credit
Accounts receivable - answers- 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? - answers- the total cost of merchandise sold during a
period
Owners equity - answers- one of the three main sections of a sole proprietorship's
balance sheet
Cash - answers- includes the following: currency and coins, checks received from
customers but not yet deposited, checking accounts, and petty cash
Operating statement is another name for the ______ - answers- income statement
Purchases, returns and allowances, and purchase discounts are classified as _______
on the income statement - answers- contra-cost accounts
Law of supply - answers- states that the quantity of a good supplied (i.e. the amount
owners or producers offer for sale) rises as the market price rises, and falls as the price
falls
Population sampling - answers- the process of taking a subset of subjects that is
representative of the entire population. The sample must have sufficient size to warrant
statistical analysis
What is principles of accounting - answers- the broad underlying concepts which guide
accountants when preparing financial statements
What is equity? - answers- it indicates an ownership interest in a business
What is meant by reconciling an account? - answers- it is likely to mean proving or
documenting that an account balance is correct
Implicit cost - answers- any cost that has already occurred but not necessarily shown or
reported as a separate expense
, Explicit cost - answers- normal business costs that appear in the general ledger and
directly affect a company's profitability
Stocks - answers- shares of ownership in a company
Bonds - answers- certificates of debt that carry a promise to buy back the bonds at a
higher price
An increase in ______ will increase owners equity - answers- client fees
A dividend will reduce ______ - answers- retained earnings
Conflicts of interest exist when employees must choose whether to - answers- advance
their own interests, those of the organization, or those of some other gtoup
Tqm is most helpful to firms following the ______ business strategy - answers-
integrated cost-leadership differentiation
Which of the following is not considered an extrinsic motivator in herzberg's two-factor
theory - answers- work itself
Which of the following is not one of the process motivation theories? - answers-
acquired needs theory
The largest component of gdp is ______ - answers- consumption
In economics, firms are assumed to ______ - answers- maximize profits
Cash equivalents - answers- short-term high liquidity investments with a maturity date
that was 3 months or less at the time of purchase. Ex) money market accounts, u.s.
treasury bills, and commercial paper
When a business erroneously records expenses as assets, it has violated the
measurement of _____ - answers- classification
Lying by omission involves intentionally - answers- withholding material facts
The federal highway administration uses notice-and-comment rulemaking. This process
begins with - answers- the publication of a notice of proposed rulemaking
One way human resource planning links to strategic planning is by providing a set of
inputs into the ______ - answers- strategy formulation process
Which of the following is not one of w. Edwards deming's 14 points? - answers- the only
performance standard is zero defects
