Peregrine accounting and finance Exam
Questions with correct Answers
2025/2026 A+ Graded 100% Verified
Which financial statement reports the revenues and expenses for a period of time such as year
or a month? - ANS-Income Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date? - ANS-Balance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period when
which of the following occurs? - ANS-Services or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period when
which of the following occurs? - ANS-an expense matches the revenues or is used up
Revenue minus expenses equals _____. - ANS-net income
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on
the balance sheet and are referred to as
_________ - ANS-assets
Assets are usually reported on the balance sheet at which amount? - ANS-cost
Cost principle - ANS-A principle that states that acquired assets and services should be
recorded at their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ - ANS-liabilities
Liabilities often have the word
__________
in their account title - ANS-payables
, Unearned Revenues is what type of account? - ANS-Liability (The company that is to perform
the service or is to deliver the product has received the cash in advance and therefore has an
obligation (liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? - ANS-Two - because of the
double entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ - ANS-stockholders' equity or owner's equity
(net assets if a nonprofit)
Which term is associated with "left" or "left side"? - ANS-Debit
Which term is associated with "right" or "right side"? - ANS-Credit
When cash is received, the account Cash will be _________ - ANS-Debited
When a company pays a bill, the account Cash will be __________. - ANS-Credited
What will usually cause an asset account to increase? - ANS-Debit
What will usually cause the liability account Accounts Payable to increase? - ANS-Credit
Entries to expenses such as Rent Expense are usually _________ - ANS-Debits
Entries to revenues accounts such as Service Revenues are usually _________ - ANS-Credits
Discounted cash flow analysis determines value by - ANS-finding the present value of all future
payments
What is present value? - ANS-the current value of future cash flows discounted at the
appropriate discount rate
what is cash flow - ANS-the total amount of money being transferred into and out of a business
lowering interest rates through central bank action is thought to cause - ANS-lower
unemployment
central bank - ANS-an institution designed to oversee the banking system and regulate the
quantity of money in the economy
if a person's home currency goes up in value this will make - ANS-foreign currency decrease in
relative value
Questions with correct Answers
2025/2026 A+ Graded 100% Verified
Which financial statement reports the revenues and expenses for a period of time such as year
or a month? - ANS-Income Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date? - ANS-Balance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period when
which of the following occurs? - ANS-Services or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period when
which of the following occurs? - ANS-an expense matches the revenues or is used up
Revenue minus expenses equals _____. - ANS-net income
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on
the balance sheet and are referred to as
_________ - ANS-assets
Assets are usually reported on the balance sheet at which amount? - ANS-cost
Cost principle - ANS-A principle that states that acquired assets and services should be
recorded at their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ - ANS-liabilities
Liabilities often have the word
__________
in their account title - ANS-payables
, Unearned Revenues is what type of account? - ANS-Liability (The company that is to perform
the service or is to deliver the product has received the cash in advance and therefore has an
obligation (liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? - ANS-Two - because of the
double entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ - ANS-stockholders' equity or owner's equity
(net assets if a nonprofit)
Which term is associated with "left" or "left side"? - ANS-Debit
Which term is associated with "right" or "right side"? - ANS-Credit
When cash is received, the account Cash will be _________ - ANS-Debited
When a company pays a bill, the account Cash will be __________. - ANS-Credited
What will usually cause an asset account to increase? - ANS-Debit
What will usually cause the liability account Accounts Payable to increase? - ANS-Credit
Entries to expenses such as Rent Expense are usually _________ - ANS-Debits
Entries to revenues accounts such as Service Revenues are usually _________ - ANS-Credits
Discounted cash flow analysis determines value by - ANS-finding the present value of all future
payments
What is present value? - ANS-the current value of future cash flows discounted at the
appropriate discount rate
what is cash flow - ANS-the total amount of money being transferred into and out of a business
lowering interest rates through central bank action is thought to cause - ANS-lower
unemployment
central bank - ANS-an institution designed to oversee the banking system and regulate the
quantity of money in the economy
if a person's home currency goes up in value this will make - ANS-foreign currency decrease in
relative value
