Peregrine accounting and finance exam |\ |\ |\ |\ |\
questions with answers |\ |\
Which financial statement reports the revenues and expenses for
|\ |\ |\ |\ |\ |\ |\ |\ |\
a period of time such as year or a month? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Income Statement |\
Which financial statement reports the assets, liabilities, and
|\ |\ |\ |\ |\ |\ |\ |\
stockholders' (owner's) equity at a specific date? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Balance sheet |\ |\
Under the accrual basis of accounting, revenues are reported in
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the accounting period when which of the following occurs? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT 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? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔an expense matches the revenues or is
|\ |\ |\ |\ |\ |\ |\ |\ |\
used up |\
Revenue minus expenses equals _____. - CORRECT 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 |\ |\ |\
_________ - CORRECT ANSWERS ✔✔assets
|\ |\ |\ |\
, Assets are usually reported on the balance sheet at which
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
amount? - CORRECT ANSWERS ✔✔cost |\ |\ |\ |\
Cost principle - CORRECT 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
|\ |\ |\ |\ |\
________ - CORRECT ANSWERS ✔✔liabilities
|\ |\ |\ |\
Liabilities often have the word |\ |\ |\ |\ |\
__________
in their account title - CORRECT ANSWERS ✔✔payables
|\ |\ |\ |\ |\ |\ |\ |\
Unearned Revenues is what type of account? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\
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? - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Two - because of the double entry system,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
every transaction will affect at least two accounts
|\ |\ |\ |\ |\ |\ |\
Assets minus liabilities equals
|\ |\ |\ |\
questions with answers |\ |\
Which financial statement reports the revenues and expenses for
|\ |\ |\ |\ |\ |\ |\ |\ |\
a period of time such as year or a month? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Income Statement |\
Which financial statement reports the assets, liabilities, and
|\ |\ |\ |\ |\ |\ |\ |\
stockholders' (owner's) equity at a specific date? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Balance sheet |\ |\
Under the accrual basis of accounting, revenues are reported in
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the accounting period when which of the following occurs? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT 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? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔an expense matches the revenues or is
|\ |\ |\ |\ |\ |\ |\ |\ |\
used up |\
Revenue minus expenses equals _____. - CORRECT 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 |\ |\ |\
_________ - CORRECT ANSWERS ✔✔assets
|\ |\ |\ |\
, Assets are usually reported on the balance sheet at which
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
amount? - CORRECT ANSWERS ✔✔cost |\ |\ |\ |\
Cost principle - CORRECT 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
|\ |\ |\ |\ |\
________ - CORRECT ANSWERS ✔✔liabilities
|\ |\ |\ |\
Liabilities often have the word |\ |\ |\ |\ |\
__________
in their account title - CORRECT ANSWERS ✔✔payables
|\ |\ |\ |\ |\ |\ |\ |\
Unearned Revenues is what type of account? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\
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? - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Two - because of the double entry system,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
every transaction will affect at least two accounts
|\ |\ |\ |\ |\ |\ |\
Assets minus liabilities equals
|\ |\ |\ |\
