PEREGRINE EXAM 1 2026 || MOST RECENT EXAM
ACTUAL COMPLETE REAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED SUCCESS!!
NEWEST EXAM | JUST RELEASED!!| ACE YOUR
GRADES.
What is included in cash and cash equivalents?
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.
money market accounts
U.S. Treasury
Bills
commercial
paper
,What is the difference between an implicit cost and an explicit cost?
An implicit cost is present but it is not initially shown or reported as a separate
cost.
An explicit cost is a cost that is present and it is clearly shown or reported as a
separate cost.
What is the difference between stocks and bonds?
Stocks, or shares of capital stock, represent an ownership interest in a
corporation. Every corporation has common stock.
Bonds are a form of long-term debt in which the issuing corporation promises to
pay the principal amount at a specified maturity date.
AN INCREASE TO WHICH OF THE FOLLOWING ACCOUNTS WILL INCREASE
OWNERS' EQUITY?
Client Fees
IN TIMES OF RISING PRICES, THE INVENTORY COST METHOD THAT WILL YIELD
THE LOWEST NET INCOME IS:
LIFO (LIFO is the acronym for last-in, first-out, which is a cost flow assumption
often used by U.S. corporations in moving costs from inventory to the cost of
goods sold.
Example: Assume that a corporation uses LIFO and has three units of a
product in its inventory. Due to its supplier raising its prices, the corporation
purchased the items at different costs and in the following sequence: $40,
$44, and $46. The corporation ships the oldest item (the one purchased for
$40) to a customer at a selling price of $60.
However, under the LIFO cost flow assumption the company reports its cost of
goods sold at $46 (the latest cost) and reports a gross profit of $14. (The costs of
$40 and $44 remain in inventory.)
, When a business erroneously records expenses as assets, it has violated the
measurement issue of
classification
A dividend will reduce which of the following accounts?
Retained Earnings
Lying by omission involves intentionally
withholding material facts.
Conflicts of interest exist when employees must choose whether to
advance their own interests, those of the organization, or those of some other
group.
Which of the following statements is CORRECT?
Free cash flow (FCF) is, essentially, the cash flow that is available for interest
and dividends after the company has made the investments in current and fixed
assets that are necessary to sustain ongoing operations.
A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors
be indifferent between the two bonds?
33.73%
ACTUAL COMPLETE REAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED SUCCESS!!
NEWEST EXAM | JUST RELEASED!!| ACE YOUR
GRADES.
What is included in cash and cash equivalents?
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.
money market accounts
U.S. Treasury
Bills
commercial
paper
,What is the difference between an implicit cost and an explicit cost?
An implicit cost is present but it is not initially shown or reported as a separate
cost.
An explicit cost is a cost that is present and it is clearly shown or reported as a
separate cost.
What is the difference between stocks and bonds?
Stocks, or shares of capital stock, represent an ownership interest in a
corporation. Every corporation has common stock.
Bonds are a form of long-term debt in which the issuing corporation promises to
pay the principal amount at a specified maturity date.
AN INCREASE TO WHICH OF THE FOLLOWING ACCOUNTS WILL INCREASE
OWNERS' EQUITY?
Client Fees
IN TIMES OF RISING PRICES, THE INVENTORY COST METHOD THAT WILL YIELD
THE LOWEST NET INCOME IS:
LIFO (LIFO is the acronym for last-in, first-out, which is a cost flow assumption
often used by U.S. corporations in moving costs from inventory to the cost of
goods sold.
Example: Assume that a corporation uses LIFO and has three units of a
product in its inventory. Due to its supplier raising its prices, the corporation
purchased the items at different costs and in the following sequence: $40,
$44, and $46. The corporation ships the oldest item (the one purchased for
$40) to a customer at a selling price of $60.
However, under the LIFO cost flow assumption the company reports its cost of
goods sold at $46 (the latest cost) and reports a gross profit of $14. (The costs of
$40 and $44 remain in inventory.)
, When a business erroneously records expenses as assets, it has violated the
measurement issue of
classification
A dividend will reduce which of the following accounts?
Retained Earnings
Lying by omission involves intentionally
withholding material facts.
Conflicts of interest exist when employees must choose whether to
advance their own interests, those of the organization, or those of some other
group.
Which of the following statements is CORRECT?
Free cash flow (FCF) is, essentially, the cash flow that is available for interest
and dividends after the company has made the investments in current and fixed
assets that are necessary to sustain ongoing operations.
A corporate bond currently yields 8.3%. Municipal bonds with the same risk,
maturity, and liquidity currently yield 5.5%. At what tax rate would investors
be indifferent between the two bonds?
33.73%
