Peregrine accounting and finance Test Questions with Correct Answers Latest Update 2025
Which financial statement reports the revenues and expenses for a period of time such as year or a
month? - Answers Income Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a specific
date? - Answers Balance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period when which of
the following occurs? - Answers Services or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period when which of
the following occurs? - Answers an expense matches the revenues or is used up
Revenue minus expenses equals _____. - Answers net income
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the
balance sheet and are referred to as
_________ - Answers assets
Assets are usually reported on the balance sheet at which amount? - Answers cost
Cost principle - Answers A principle that states that acquired assets and services should be recorded at
their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ - Answers liabilities
Liabilities often have the word
__________
in their account title - Answers payables
Unearned Revenues is what type of account? - Answers Liability (The company that is to perform the
service or is to deliver the product has received the cash in advance and therefore has an obligation
(liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? - Answers Two - because of the double
entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ - Answers stockholders' equity or owner's equity
(net assets if a nonprofit)
Which financial statement reports the revenues and expenses for a period of time such as year or a
month? - Answers Income Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a specific
date? - Answers Balance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period when which of
the following occurs? - Answers Services or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period when which of
the following occurs? - Answers an expense matches the revenues or is used up
Revenue minus expenses equals _____. - Answers net income
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the
balance sheet and are referred to as
_________ - Answers assets
Assets are usually reported on the balance sheet at which amount? - Answers cost
Cost principle - Answers A principle that states that acquired assets and services should be recorded at
their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ - Answers liabilities
Liabilities often have the word
__________
in their account title - Answers payables
Unearned Revenues is what type of account? - Answers Liability (The company that is to perform the
service or is to deliver the product has received the cash in advance and therefore has an obligation
(liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? - Answers Two - because of the double
entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ - Answers stockholders' equity or owner's equity
(net assets if a nonprofit)
