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ACCOUNTING PEREGRINE EXAM
QUESTIONS WITH CORRECT
ANSWERS ( A+ GRADED 100%
VERIFIED).
Question : 1. Accounts Receivable is a(n) ________
account and has a normal ________ balance.
Options:
Liability; debit
Asset; debit
Liability; credit
Asset; credit
CORRECT ANSWER: Asset; debit
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Question : Prepaid Rent is a(n) ________ account and has
a normal ________ balance.
Options:
Liability; debit
Asset; debit
Liability; credit
Asset; credit
CORRECT ANSWER : Asset; debit
Question : A business purchases equipment for $8,000
cash. Which of the following accounts is credited?
Options:
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Prepaid Equipment
Common Stock
Accounts Payable
Cash
CORRECT ANSWER : Cash
Question : Adjusting journal entries includes the use of
cash?
Options:
True
False
CORRECT ANSWER : False
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Question : Which of the following inventory systems
would generate the highest cost of goods sold and lowest ending inventory?
Options:
LIFO
FIFO
MIFO
Average Cost
CORRECT ANSWER : LIFO
Question : "Tone from the top is essential to having a
successful internal control system"