4/18/26, 12:10 AM Peregrine Business Exam
MGMT 479 (Columbia College) Peregrine Business Exam
2026 \NEWEST EXAM WITH COMPLETE QUESTIONS
AND CORRECT ANSWERS\VERIFIED 100% ALREADY
GRADED A+ || LATEST UPDATE 2026
When a business erroneously records expenses as assets, it has violated the
measurement issue of:
A. communication
B. classification
C. valuation
D. recognition
B. classification
A dividend will reduce which of the following accounts?
A. Dividends
B. Retained Earnings
C. Common Stock
D. Accounts Payable
B. Retained Earnings
1/20
,4/18/26, 12:10 AM Peregrine Business Exam
Which of the following statements is CORRECT?
A. 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.
B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
C. Two firms with identical sales and operating costs but with different
amounts of debt and tax rates will have different operating incomes by
definition.
D. If a firm is reporting its income in accordance with generally accepted
accounting principles, then its net income as reported on the income
statement should be equal to its free cash flow.
A. 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?
A. 33.73%
B. 28.24%
C. 25.98%
D. 42.17%
A. 33.73%
2/20
, 4/18/26, 12:10 AM Peregrine Business Exam
When the costs of supplies increase in an industry, the low-cost leader:
A. may continue competing with rivals on the basis of product features.
B. will lose customers as a result of price increases.
C. will be unable to absorb higher costs because cost-leaders operate
on very narrow profit margins.
D. may be the only firm able to pay the higher prices and continue to earn
average or above- average returns.
D. may be the only firm able to pay the higher prices and continue to earn
average or above- average returns.
Liquidity
The degree to which a security can be quickly purchased or sold in the
market at a price reflecting its current value.
Sarbanes-Oxley Act
Federal law that established sweeping auditing and financial regulations for
public companies. Lawmakers created the legislation to help protect
shareholders,
employees and the public from accounting errors and fraudulent financial
practices.
3/20
MGMT 479 (Columbia College) Peregrine Business Exam
2026 \NEWEST EXAM WITH COMPLETE QUESTIONS
AND CORRECT ANSWERS\VERIFIED 100% ALREADY
GRADED A+ || LATEST UPDATE 2026
When a business erroneously records expenses as assets, it has violated the
measurement issue of:
A. communication
B. classification
C. valuation
D. recognition
B. classification
A dividend will reduce which of the following accounts?
A. Dividends
B. Retained Earnings
C. Common Stock
D. Accounts Payable
B. Retained Earnings
1/20
,4/18/26, 12:10 AM Peregrine Business Exam
Which of the following statements is CORRECT?
A. 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.
B. After-tax operating income is calculated as EBIT (1 - T) + Depreciation.
C. Two firms with identical sales and operating costs but with different
amounts of debt and tax rates will have different operating incomes by
definition.
D. If a firm is reporting its income in accordance with generally accepted
accounting principles, then its net income as reported on the income
statement should be equal to its free cash flow.
A. 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?
A. 33.73%
B. 28.24%
C. 25.98%
D. 42.17%
A. 33.73%
2/20
, 4/18/26, 12:10 AM Peregrine Business Exam
When the costs of supplies increase in an industry, the low-cost leader:
A. may continue competing with rivals on the basis of product features.
B. will lose customers as a result of price increases.
C. will be unable to absorb higher costs because cost-leaders operate
on very narrow profit margins.
D. may be the only firm able to pay the higher prices and continue to earn
average or above- average returns.
D. may be the only firm able to pay the higher prices and continue to earn
average or above- average returns.
Liquidity
The degree to which a security can be quickly purchased or sold in the
market at a price reflecting its current value.
Sarbanes-Oxley Act
Federal law that established sweeping auditing and financial regulations for
public companies. Lawmakers created the legislation to help protect
shareholders,
employees and the public from accounting errors and fraudulent financial
practices.
3/20
