Peregrine Exam Study Guide

Peregrine Exam Study Guide 1. When the costs of supplies increase in an industry, the low cost leader : is the only firm able to pay the higher prices and continue to earn average or above average returns 2. Accounts Payable: current liability account in which a company records the amounts it owes to suppliers or vendors for goods or services that it recieved on credit 3. accounts receivable: current asset account in which a company records the amounts it has a right to collect from customers who received goods or services on credit 4. what is the cost of goods sold?: the total cost of merchandise sold during a period 5. owners equity: one of the three main sections of a sole proprietorship's balance sheet 6. cash: includes the following: currency and coins, checks received from customers but not yet deposited, checking accounts, and petty cash 7. cash equivalents: short-term high liquidity investments with a maturity date that was 3 months or less at the time of purchase. Ex) money market accounts, U.S. Treasury Bills, and commercial paper 8. when a business erroneously records expenses as assets, it has violated the measurement of : classification 9. lying by omission involves intentionally: withholding material facts 10. The Federal Highway Administration uses notice-and-comment rulemak- ing. this process begins with: the publication of a notice of proposed rulemaking 11. one way human resource planning links to strategic planning is by provid- ing a set of inputs into the : strategy formulation process 12. which of the following is not one of W. Edwards Deming's 14 points?: the only performance standard is zero defects 13. operating statement is another name for the : Income Statement 14. Purchases, returns and allowances, and purchase discounts are classified as on the income statement: contra-cost accounts 15. law of supply: states that the quantity of a good supplied (I.E. the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls 16. population sampling: the process of taking a subset of subjects that is repre- sentative of the entire population. the sample must have sufficient size to warrant statistical analysis 17. what is principles of accounting: the broad underlying concepts which guide accountants when preparing financial statements 18. what is equity?: it indicates an ownership interest in a business