©THESTAR 2025 ALL RIGHTS RESERVED 10:34 PM A+
Foundations of Business Finance (Peregrine)
Exam Questions And Answers |Latest 2025 |
Guaranteed Pass
True or false: The one fixed asset that is not depreciated is land because it seldom declines in
value. - Answer✔True
__________ liabilities are those due within one year. - Answer✔Current
__________-__________ __________ liabilities are due after more than a year, and may
include bonds, mortgages, and long-term loans. - Answer✔Long-term debt
Name the three types of accounts listed as current liabilities on balance sheets. - Answer✔(1)
Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable - Answer✔The amounts owed for credit purchases by a firm
Notes payable - Answer✔Outstanding short-term loans, typically from commercial banks
Accrued expenses - Answer✔Costs that have been incurred by a firm which have not yet been
paid; examples of accruals include taxes owed to the government and unpaid wages
1
, ©THESTAR 2025 ALL RIGHTS RESERVED 10:34 PM A+
The __________ __________ section of a balance sheet provides information about the claims
against a firm held by investors who own preferred and common shares. -
Answer✔Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in four types of accounts.
These include __________ __________, __________ __________, __________-__________-
__________ __________ ___________ __________ __________, and __________ __________.
- Answer✔(1) preferred stock
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of preferred stock. -
Answer✔Preferred stock
__________-__________-__________ __________ __________ __________ __________
equals the number of shares outstanding multiplied by the original selling price of the shares,
net of the par value. - Answer✔Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common shares multiplied by the
par value per share. - Answer✔Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer accounting methods
used to track the number of outstanding shares. It has no relation to the actual value of the
shares. - Answer✔Par value
__________ __________ are the cumulative total of the earnings that the firm has reinvested
in its assets and operations since its inception. - Answer✔Retained earnings
2
Foundations of Business Finance (Peregrine)
Exam Questions And Answers |Latest 2025 |
Guaranteed Pass
True or false: The one fixed asset that is not depreciated is land because it seldom declines in
value. - Answer✔True
__________ liabilities are those due within one year. - Answer✔Current
__________-__________ __________ liabilities are due after more than a year, and may
include bonds, mortgages, and long-term loans. - Answer✔Long-term debt
Name the three types of accounts listed as current liabilities on balance sheets. - Answer✔(1)
Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable - Answer✔The amounts owed for credit purchases by a firm
Notes payable - Answer✔Outstanding short-term loans, typically from commercial banks
Accrued expenses - Answer✔Costs that have been incurred by a firm which have not yet been
paid; examples of accruals include taxes owed to the government and unpaid wages
1
, ©THESTAR 2025 ALL RIGHTS RESERVED 10:34 PM A+
The __________ __________ section of a balance sheet provides information about the claims
against a firm held by investors who own preferred and common shares. -
Answer✔Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in four types of accounts.
These include __________ __________, __________ __________, __________-__________-
__________ __________ ___________ __________ __________, and __________ __________.
- Answer✔(1) preferred stock
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of preferred stock. -
Answer✔Preferred stock
__________-__________-__________ __________ __________ __________ __________
equals the number of shares outstanding multiplied by the original selling price of the shares,
net of the par value. - Answer✔Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common shares multiplied by the
par value per share. - Answer✔Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer accounting methods
used to track the number of outstanding shares. It has no relation to the actual value of the
shares. - Answer✔Par value
__________ __________ are the cumulative total of the earnings that the firm has reinvested
in its assets and operations since its inception. - Answer✔Retained earnings
2
