PEREGRINE ACCOUNTING AND
FINANCE EXAM 2025/2026 QUESTIONS
AND ANSWERS 100% PASS
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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
FINANCE EXAM 2025/2026 QUESTIONS
AND ANSWERS 100% PASS
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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
