Peregrine Exam
When the costs of supplies increase in an industry, the low cost leader_____ - ANS- is
the only firm able to pay the higher prices and continue to earn average or above average
returns
Accounts Payable - ANS- current liability account in which a company records the
amounts it owes to suppliers or vendors for goods or services that it received on credit
accounts receivable - ANS- current asset account in which a company records the
amounts it has a right to collect from customers who received goods or services on
credit
what is the cost of goods sold? - ANS- the total cost of merchandise sold during a
period
owners equity - ANS- one of the three main sections of a sole proprietorship's balance
sheet
cash - ANS- includes the following: currency and coins, checks received from customers
but not yet deposited, checking accounts, and petty cash
cash equivalents - ANS- short-term high liquidity investments with a maturity date that
was 3 months or less at the time of purchase. Ex) money market accounts, U.S. Treasury
Bills, and commercial paper
when a business erroneously records expenses as assets, it has violated the
measurement of _____ - ANS- classification
lying by omission involves intentionally - ANS- withholding material facts
The Federal Highway Administration uses notice-and-comment rulemaking. this process
begins with - ANS- the publication of a notice of proposed rulemaking
one way human resource planning links to strategic planning is by providing a set of
inputs into the ______ - ANS- strategy formulation process
which of the following is not one of W. Edwards Deming's 14 points? - ANS- the only
performance standard is zero defects
operating statement is another name for the ______ - ANS- Income Statement
, Purchases, returns and allowances, and purchase discounts are classified as _______ on
the income statement - ANS- contra-cost accounts
law of supply - ANS- states that the quantity of a good supplied (I.E. the amount owners
or producers offer for sale) rises as the market price rises, and falls as the price falls
population sampling - ANS- the process of taking a subset of subjects that is
representative of the entire population. the sample must have sufficient size to warrant
statistical analysis
what is principles of accounting - ANS- the broad underlying concepts which guide
accountants when preparing financial statements
what is equity? - ANS- it indicates an ownership interest in a business
what is meant by reconciling an account? - ANS- it is likely to mean proving or
documenting that an account balance is correct
implicit cost - ANS- any cost that has already occurred but not necessarily shown or
reported as a separate expense
explicit cost - ANS- normal business costs that appear in the general ledger and directly
affect a company's profitability
stocks - ANS- shares of ownership in a company
bonds - ANS- Certificates of debt that carry a promise to buy back the bonds at a higher
price
an increase in ______ will increase owners equity - ANS- client fees
a dividend will reduce ______ - ANS- retained earnings
conflicts of interest exist when employees must choose whether to - ANS- advance their
own interests, those of the organization, or those of some other gtoup
TQM is most helpful to firms following the ______ business strategy - ANS- integrated
cost-leadership differentiation
which of the following is not considered an extrinsic motivator in Herzberg's two-factor
theory - ANS- work itself
When the costs of supplies increase in an industry, the low cost leader_____ - ANS- is
the only firm able to pay the higher prices and continue to earn average or above average
returns
Accounts Payable - ANS- current liability account in which a company records the
amounts it owes to suppliers or vendors for goods or services that it received on credit
accounts receivable - ANS- current asset account in which a company records the
amounts it has a right to collect from customers who received goods or services on
credit
what is the cost of goods sold? - ANS- the total cost of merchandise sold during a
period
owners equity - ANS- one of the three main sections of a sole proprietorship's balance
sheet
cash - ANS- includes the following: currency and coins, checks received from customers
but not yet deposited, checking accounts, and petty cash
cash equivalents - ANS- short-term high liquidity investments with a maturity date that
was 3 months or less at the time of purchase. Ex) money market accounts, U.S. Treasury
Bills, and commercial paper
when a business erroneously records expenses as assets, it has violated the
measurement of _____ - ANS- classification
lying by omission involves intentionally - ANS- withholding material facts
The Federal Highway Administration uses notice-and-comment rulemaking. this process
begins with - ANS- the publication of a notice of proposed rulemaking
one way human resource planning links to strategic planning is by providing a set of
inputs into the ______ - ANS- strategy formulation process
which of the following is not one of W. Edwards Deming's 14 points? - ANS- the only
performance standard is zero defects
operating statement is another name for the ______ - ANS- Income Statement
, Purchases, returns and allowances, and purchase discounts are classified as _______ on
the income statement - ANS- contra-cost accounts
law of supply - ANS- states that the quantity of a good supplied (I.E. the amount owners
or producers offer for sale) rises as the market price rises, and falls as the price falls
population sampling - ANS- the process of taking a subset of subjects that is
representative of the entire population. the sample must have sufficient size to warrant
statistical analysis
what is principles of accounting - ANS- the broad underlying concepts which guide
accountants when preparing financial statements
what is equity? - ANS- it indicates an ownership interest in a business
what is meant by reconciling an account? - ANS- it is likely to mean proving or
documenting that an account balance is correct
implicit cost - ANS- any cost that has already occurred but not necessarily shown or
reported as a separate expense
explicit cost - ANS- normal business costs that appear in the general ledger and directly
affect a company's profitability
stocks - ANS- shares of ownership in a company
bonds - ANS- Certificates of debt that carry a promise to buy back the bonds at a higher
price
an increase in ______ will increase owners equity - ANS- client fees
a dividend will reduce ______ - ANS- retained earnings
conflicts of interest exist when employees must choose whether to - ANS- advance their
own interests, those of the organization, or those of some other gtoup
TQM is most helpful to firms following the ______ business strategy - ANS- integrated
cost-leadership differentiation
which of the following is not considered an extrinsic motivator in Herzberg's two-factor
theory - ANS- work itself
