Peregrine Exam Review Questions and Answer 100% Guaranteed Pass

Peregrine Exam Review Questions and Answer
100% Guaranteed Pass
1. What is a general ledger?: A general ledger account is an account or record used to sort, st
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ore and summarize a company's transactions.
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asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipme
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liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and C
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stomer Deposits i




stockholders' equity accounts such as Common Stock, Retained Earnings,Treasury Stock, and Ac
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umulated Other Comprehensive Income i i i


2. What is the difference between accounts payable and accounts receivable?-
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: Accounts payable is a current liability account in which a company records the amounts it o
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wes to suppliers or vendors for goods or services that it received on credit.
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Accounts receivable is a current asset account in which a company records the amounts it has a
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ht to collect from customers who received goods or services on credit.
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3. What is the cost of goods sold?: The cost of goods sold is the cost of the products that a r
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etailer, distributor, or manufacturer has sold.
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4. What is owner's equity?: Owner's equity is one of the three main sections of a sole proprietor
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ship's balance sheet and one of the components of the accounting equation: Assets = Liabilitie
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s + Owner's Equity.
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5. What is principles of accounting?: Principles ofaccounting canalsorefer tothe basicor funda
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mental accounting principles:cost principles, matching principles, full disclosure principles, m
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ateriality principles, going concern principles, economic en-
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tityprinciples, and so on.In this context, principles of accounting refers to the broad underlying co
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ncepts which guide accountants when preparing financial statements.
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6. What is equity?: Equity can indicate an ownership interest in a business, such as stockholde
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rs' equity or owner's equity.
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Equitycan mean an owner's interest in a personal asset.For example, the owner of a $200,000 ho
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, use that has a mortgage loan of $75,000 is said to have $125,000 of equity in the house.
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7. What is meant by reconciling an account?: Reconciling an account is likely to mean proving
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or documenting that an account balance is correct.
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8. What is included in cash and cash equivalents?: In accounting, a company's cash includes
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the following: i


currency and coins i i


checks received from customers but not yet deposited
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