Peregrine Exam Review Day 1 Accounting
set Exam ACTUAL QUESTIONS AND
CORRECT ANSWERS
Balance Sheet Analysis - CORRECT ANSWER Analysis of assets, liabilities, and
equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - CORRECT ANSWER Sarbanes act was created in 2002 to
protect shareholders
What are dividends? - CORRECT ANSWER a sum of money paid regularly by a
company to its shareholders out of its profits
_ can be allocated as fixed amount per share - CORRECT ANSWER Dividends
Dividends - CORRECT ANSWER can only be received one or more regular payment
stream
Cash dividend - CORRECT ANSWER paid out of currency of the company
Are usually taxable
stock dividend - CORRECT ANSWER Paid out in form of stock
Property - CORRECT ANSWER paid out in form of asset
, Interim - CORRECT ANSWER made before a companies annual general meeting and
final financial statement
Common stock - CORRECT ANSWER allows owners to vote at shareholder meetings
and receive dividends
preffered stock - CORRECT ANSWER stock that gives stockholders preference in
earnings and other rights
Growth stock - CORRECT ANSWER earnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
Income stock - CORRECT ANSWER pays higher-than-average dividends compared to
other stock issues
Value stock - CORRECT ANSWER stock from a company which has a low market
price considering historical earning records and value of current assets
Blue Chip Stock - CORRECT ANSWER the stock of a large, well-established and
financially sound company that has operated for many years
Owners of bonds are - CORRECT ANSWER Debt holders, creditors and issuer
Bonds usually have - CORRECT ANSWER variable or fixed interest payments
set Exam ACTUAL QUESTIONS AND
CORRECT ANSWERS
Balance Sheet Analysis - CORRECT ANSWER Analysis of assets, liabilities, and
equity
Annually or quarterly
Helpful for investors, bankers and brokers
Compliance in Accounting - CORRECT ANSWER Sarbanes act was created in 2002 to
protect shareholders
What are dividends? - CORRECT ANSWER a sum of money paid regularly by a
company to its shareholders out of its profits
_ can be allocated as fixed amount per share - CORRECT ANSWER Dividends
Dividends - CORRECT ANSWER can only be received one or more regular payment
stream
Cash dividend - CORRECT ANSWER paid out of currency of the company
Are usually taxable
stock dividend - CORRECT ANSWER Paid out in form of stock
Property - CORRECT ANSWER paid out in form of asset
, Interim - CORRECT ANSWER made before a companies annual general meeting and
final financial statement
Common stock - CORRECT ANSWER allows owners to vote at shareholder meetings
and receive dividends
preffered stock - CORRECT ANSWER stock that gives stockholders preference in
earnings and other rights
Growth stock - CORRECT ANSWER earnings grow faster than market average
Dividends rarely paid
Investors buy them
Startup technology company likely has them
Income stock - CORRECT ANSWER pays higher-than-average dividends compared to
other stock issues
Value stock - CORRECT ANSWER stock from a company which has a low market
price considering historical earning records and value of current assets
Blue Chip Stock - CORRECT ANSWER the stock of a large, well-established and
financially sound company that has operated for many years
Owners of bonds are - CORRECT ANSWER Debt holders, creditors and issuer
Bonds usually have - CORRECT ANSWER variable or fixed interest payments
