ACCOUNTING PEREGRINE ACTUAL EXAM
SCRIPT 2026 COMPLETE QUESTIONS WITH
VERIFIED ANSWERS
⩥ Analysis of percentage increases and decreases in financial statements
items across time is a ________
A. Vertical Analysis
B. Horizontal Analysis. Answer: B. Horizontal Analysis
⩥ Analyses used in assessing solvency:. Answer: -Current position or
liquidity analysis including working capital, current ratio, and the acid-
test ratio or quick ratio
-Accounts receivable analysis including accounts receivable turnover
and number of days' sales in receivables
-Inventory analysis including inventory turnover and number of days'
sales in inventory
-Ratio of fixed assets to long-term liabilities
-Ratio of liabilities to stockholders' equity
-Number of times interest charges are earned
⩥ Major analyses used in assessing profitability:. Answer: -Return on
Sales
-Return on Assets
, -Return on Stockholders' Equity
-Return on Common Stockholders' Equity
-Earnings per share on Common Stock
⩥ Analyses regarding the market:. Answer: -Price-earnings Ratio
-Dividends per Share
-Dividend Yield
⩥ Percentage analyses, ratios, turnovers, and other measures of financial
position and operating results are useful analytical measures and are all
you need in assessing a business's past performance and predicting its
future
A. True
B. False. Answer: B. False
They are helpful, but are not a substitute for sound judgment. In
selecting and interpreting analytical measures, conditions peculiar to a
business or its industry should be considered as well as the influence of
the general economic and business environment.
⩥ Companies use _______________ to help evaluate long-term
investments and compare alternatives. Answer: capital investment
analysis, capital investment
SCRIPT 2026 COMPLETE QUESTIONS WITH
VERIFIED ANSWERS
⩥ Analysis of percentage increases and decreases in financial statements
items across time is a ________
A. Vertical Analysis
B. Horizontal Analysis. Answer: B. Horizontal Analysis
⩥ Analyses used in assessing solvency:. Answer: -Current position or
liquidity analysis including working capital, current ratio, and the acid-
test ratio or quick ratio
-Accounts receivable analysis including accounts receivable turnover
and number of days' sales in receivables
-Inventory analysis including inventory turnover and number of days'
sales in inventory
-Ratio of fixed assets to long-term liabilities
-Ratio of liabilities to stockholders' equity
-Number of times interest charges are earned
⩥ Major analyses used in assessing profitability:. Answer: -Return on
Sales
-Return on Assets
, -Return on Stockholders' Equity
-Return on Common Stockholders' Equity
-Earnings per share on Common Stock
⩥ Analyses regarding the market:. Answer: -Price-earnings Ratio
-Dividends per Share
-Dividend Yield
⩥ Percentage analyses, ratios, turnovers, and other measures of financial
position and operating results are useful analytical measures and are all
you need in assessing a business's past performance and predicting its
future
A. True
B. False. Answer: B. False
They are helpful, but are not a substitute for sound judgment. In
selecting and interpreting analytical measures, conditions peculiar to a
business or its industry should be considered as well as the influence of
the general economic and business environment.
⩥ Companies use _______________ to help evaluate long-term
investments and compare alternatives. Answer: capital investment
analysis, capital investment
