Peregrine Accounting and Finance Exam Questions with Correct Answers Latest Update
2026/2027
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
2026/2027
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
