PEREGRINE BUNDLED EXAMS 2026 COMPLETE
QUESTIONS WITH 100% CORRECT ANSWERS
◉ What is the difference between accounts payable and accounts
receivable? Answer: Accounts payable is a current liability account
in which a company records the amounts it owes to suppliers or
vendors for goods or services that it received on credit.
Accounts receivable is a 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? Answer: The cost of goods sold is
the cost of the products that a retailer, distributor, or manufacturer
has sold.
◉ What is owner's equity? Answer: Owner's equity is one of the
three main sections of a sole proprietorship's balance sheet and one
of the components of the accounting equation: Assets = Liabilities +
Owner's Equity.
◉ What is principles of accounting? Answer: Principles of
accounting can also refer to the basic or fundamental accounting
principles: cost principles, matching principles, full disclosure
principles, materiality principles, going concern principles,
, economic entity principles, and so on. In this context, principles of
accounting refers to the broad underlying concepts which guide
accountants when preparing financial statements.
◉ What is equity? Answer: Equity can indicate an ownership
interest in a business, such as stockholders' equity or owner's
equity.
Equity can mean an owner's interest in a personal asset. For
example, the owner of a $200,000 house that has a mortgage loan of
$75,000 is said to have $125,000 of equity in the house.
◉ What is meant by reconciling an account? Answer: Reconciling an
account is likely to mean proving or documenting that an account
balance is correct.
◉ What is included in cash and cash equivalents? Answer: In
accounting, a company's cash includes the following:
currency and coins
checks received from customers but not yet deposited
checking accounts
petty cash
Cash equivalents are short-term, highly liquid investments with a
maturity date that was 3 months or less at the time of purchase.
QUESTIONS WITH 100% CORRECT ANSWERS
◉ What is the difference between accounts payable and accounts
receivable? Answer: Accounts payable is a current liability account
in which a company records the amounts it owes to suppliers or
vendors for goods or services that it received on credit.
Accounts receivable is a 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? Answer: The cost of goods sold is
the cost of the products that a retailer, distributor, or manufacturer
has sold.
◉ What is owner's equity? Answer: Owner's equity is one of the
three main sections of a sole proprietorship's balance sheet and one
of the components of the accounting equation: Assets = Liabilities +
Owner's Equity.
◉ What is principles of accounting? Answer: Principles of
accounting can also refer to the basic or fundamental accounting
principles: cost principles, matching principles, full disclosure
principles, materiality principles, going concern principles,
, economic entity principles, and so on. In this context, principles of
accounting refers to the broad underlying concepts which guide
accountants when preparing financial statements.
◉ What is equity? Answer: Equity can indicate an ownership
interest in a business, such as stockholders' equity or owner's
equity.
Equity can mean an owner's interest in a personal asset. For
example, the owner of a $200,000 house that has a mortgage loan of
$75,000 is said to have $125,000 of equity in the house.
◉ What is meant by reconciling an account? Answer: Reconciling an
account is likely to mean proving or documenting that an account
balance is correct.
◉ What is included in cash and cash equivalents? Answer: In
accounting, a company's cash includes the following:
currency and coins
checks received from customers but not yet deposited
checking accounts
petty cash
Cash equivalents are short-term, highly liquid investments with a
maturity date that was 3 months or less at the time of purchase.
