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FOUNDATIONS OF BUSINESS FINANCE (PEREGRINE)
EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM
COMPLETE 160 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+/ BRAND NEW!!!
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
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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
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
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(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
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__________ __________ are the cumulative total of the
earnings that the firm has reinvested in its assets and
operations since its inception. - Answer-Retained earnings
The combined value of __________ __________ and
__________-__________-__________ equals the
proceeds the firm received when it originally sold shares to
investors (including initial public offerings and rights
offerings). - Answer-common stock, paid-in-capital
The __________ __________ entry on a balance sheet
records the value of common shares that a firm currently
holds in reserve. - Answer-treasury stock
The __________ __________ __________ __________
provides a summary of what cash has gone into and out of
a firm because of its operations, investments, and
financing activities during a year. It isolates the firm's
operating, investment, and financing cash flows and
reconciles them with changes in its cash and marketable
securities during the year. - Answer-statement of cash
flows
FOUNDATIONS OF BUSINESS FINANCE (PEREGRINE)
EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM
COMPLETE 160 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+/ BRAND NEW!!!
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
,2|Page
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
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
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(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
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__________ __________ are the cumulative total of the
earnings that the firm has reinvested in its assets and
operations since its inception. - Answer-Retained earnings
The combined value of __________ __________ and
__________-__________-__________ equals the
proceeds the firm received when it originally sold shares to
investors (including initial public offerings and rights
offerings). - Answer-common stock, paid-in-capital
The __________ __________ entry on a balance sheet
records the value of common shares that a firm currently
holds in reserve. - Answer-treasury stock
The __________ __________ __________ __________
provides a summary of what cash has gone into and out of
a firm because of its operations, investments, and
financing activities during a year. It isolates the firm's
operating, investment, and financing cash flows and
reconciles them with changes in its cash and marketable
securities during the year. - Answer-statement of cash
flows
