PEREGRINE ACCOUNTING AND FINANCE
EXAM QUESTIONS AND ANSWERS
2025|2026 VERIFIED GRADED A+ ALREADY
PASSED!
if a country has two income tax brackets with higher tax rates on higher
income, a taxpayer earning enough to be taxed in the higher bracket
earning $100 additional dollars will pay - CORRECT ANSWER-a tax rate
on the $100 equal to the higher rate
Financial statements - CORRECT ANSWER-provide information that is
useful for making investment and other economic decisions about
businesses
horizontal analysis - CORRECT ANSWER-analysis of financial statements
that compares account values reported on these statements over two
or more years to identify changes and trends
, Vertical analysis - CORRECT ANSWER-reporting an amount on a financial
statement as a percentage of another item on the same financial
statement
the times interest earning ratio is computed as what - CORRECT
ANSWER-income before tax plus interest expense divided by interest
expense
accelerating the collection of receivables will tend to cause the accounts
receivable turnover to what? - CORRECT ANSWER-increase
the ability of a business to repay its debts and to earn income is
referred to as what - CORRECT ANSWER-solvency and profitability
Solvency - CORRECT ANSWER-The ability of a company to pay interest
as it comes due and to repay the balance of debt due at its maturity.
EXAM QUESTIONS AND ANSWERS
2025|2026 VERIFIED GRADED A+ ALREADY
PASSED!
if a country has two income tax brackets with higher tax rates on higher
income, a taxpayer earning enough to be taxed in the higher bracket
earning $100 additional dollars will pay - CORRECT ANSWER-a tax rate
on the $100 equal to the higher rate
Financial statements - CORRECT ANSWER-provide information that is
useful for making investment and other economic decisions about
businesses
horizontal analysis - CORRECT ANSWER-analysis of financial statements
that compares account values reported on these statements over two
or more years to identify changes and trends
, Vertical analysis - CORRECT ANSWER-reporting an amount on a financial
statement as a percentage of another item on the same financial
statement
the times interest earning ratio is computed as what - CORRECT
ANSWER-income before tax plus interest expense divided by interest
expense
accelerating the collection of receivables will tend to cause the accounts
receivable turnover to what? - CORRECT ANSWER-increase
the ability of a business to repay its debts and to earn income is
referred to as what - CORRECT ANSWER-solvency and profitability
Solvency - CORRECT ANSWER-The ability of a company to pay interest
as it comes due and to repay the balance of debt due at its maturity.
