Peregrine Business Exam Questions and Answers 100% Correct

Peregrine Business Exam Questions and Answers 100% Correct


1. When a business erroneously records expenses as assets, it has violated the meas
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urement issue of: w w




A. communication
B. classification
C. valuation
D. recognition: B. classification w w


2. A dividend will reduce which of the following accounts?
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A. Dividends
B. Retained Earnings w


C. Common Stock w


D. Accounts Payable: B. Retained Earnings
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3. Liquidity: The degree to which a security can be quickly purchased or sold in the market
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at a price reflecting its current value.
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4. Sarbanes-Oxley Act: Federal law that established sweeping auditing and fi-
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wnancial regulations for public companies. Lawmakers created the legislation to help pr
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otect shareholders, employees and the public from accounting errors and fraudulent fin
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ancial practices.
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5. Continually shifting back and forth between the role of speaker and listener is
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.

A. a cultural practice
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B. distracting to the speaker w w w


C. called framing w


D. making smooth transitions: D. making smooth transitions
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6. The real increases in organizational productivity due to information tech-
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nology come from
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,A. the increased speed of message transfer
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B. the increased volume of messages
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C. the heightened awareness of cultural diversity
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D. the ability to communicate in new and different ways: D. the ability to com-
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municate in new and different ways
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7. Lying by omission involves intentionally:
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A. withholding material facts. w w


B. creating "noise" within the communication that knowingly confuses or deceives
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the receiver.
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, C. using highly technical language that the receiver does not understand.
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D. trying to not hurt someone's feelings.: A. withholding material facts.
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8. Conflicts of interest exist when employees must choose whether to:
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A. advance their own interests, those of the organization, or those of some other gro
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up.
B. advance the interests of the organization or those of society.
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C. accept bribes. w


D. carry out an assignment they perceive as unethical.: A. advance their own interests,
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wthose of the organization, or those of some other group.
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9. Civil Rights Act: 1964; Secured the rights of freedmen., it gave citizenship to African-
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wAmericans
10. Equal Employment Opportunity: The equal right of all citizens to the oppor-
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wtunity to obtain employment regardless of their gender, age, race, country of origin, religio
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n, or disabilities.
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11. Whistleblowing: Activity of a person, often an employee, revealing information about a
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ctivity within a private or public organization that is deemed illegal, immoral, illicit, unsafe
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or fraudulent. w


12. Group Think: A phenomenon that occurs when a group of individuals reaches a conse
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nsus without critical reasoning or evaluation of the consequences or alter- natives.
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13. Which of the following statements is CORRECT?
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A. Free cash flow (FCF) is, essentially, the cash flow that is available for interest and divid
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ends after the company has made the investments in current and fixed assets that are
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necessary to sustain ongoing operations. w w w w


B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
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C. Two firms with identical sales and operating costs but with different amounts of d
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ebt and tax rates will have different operating incomes by de- finition.
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D. If a firm is reporting its income in accordance with generally accepted ac-
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wcounting principles, then its net income as reported on the income statement should b
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e equal to its free cash flow.: A. Free cash flow (FCF) is, essentially, the cash flow that is a
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