Adventis Financial Modeling Course EXAM
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Terms in this set (89)
Income Statement Presents the results of operations over a period of
time, typically monthly, quarterly and/or annually
Income Statement The purpose is to show stakeholders whether the
company made or lost money during the period
being reported, and it indicates how revenues are
transformed into net income
, Income Statement Displays revenues recognized for a specific period
of time and the expenses charged against those
revenues
Revenue (Sales) The amount charged for the delivery of goods or
services
Cost of Sales (Cost of Goods Sold) The direct cost of producing revenue (raw
materials, direct wages, etc.)
Gross Profit calculated as revenue less cost of sales and
indicates how efficiently labor and supplies are
used in the production process
Operating Expenses All other expenses required to run the business
(management salaries, marketing, travel, etc.)
Operating Income (EBIT) Calculated as revenue less cost of sales and
operating expenses and indicates a company's
earning power from ongoing operations
Non-Operating Expenses Expenses or income not related to the regular
business of the company (interest expense,
restructuring expenses, etc.)
Corporate Taxes Local and federal income taxes the company incurs
Net Income (Net Earnings) Calculated as revenue less all expenses of the
company and indicates the increase in
shareholders' value resulting from operations
Balance Sheet Shows and organization's financial position at a
particular point in time
Questions and Answers (Verified Answers) (Latest
Update 2026) UPDATE!!
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Terms in this set (89)
Income Statement Presents the results of operations over a period of
time, typically monthly, quarterly and/or annually
Income Statement The purpose is to show stakeholders whether the
company made or lost money during the period
being reported, and it indicates how revenues are
transformed into net income
, Income Statement Displays revenues recognized for a specific period
of time and the expenses charged against those
revenues
Revenue (Sales) The amount charged for the delivery of goods or
services
Cost of Sales (Cost of Goods Sold) The direct cost of producing revenue (raw
materials, direct wages, etc.)
Gross Profit calculated as revenue less cost of sales and
indicates how efficiently labor and supplies are
used in the production process
Operating Expenses All other expenses required to run the business
(management salaries, marketing, travel, etc.)
Operating Income (EBIT) Calculated as revenue less cost of sales and
operating expenses and indicates a company's
earning power from ongoing operations
Non-Operating Expenses Expenses or income not related to the regular
business of the company (interest expense,
restructuring expenses, etc.)
Corporate Taxes Local and federal income taxes the company incurs
Net Income (Net Earnings) Calculated as revenue less all expenses of the
company and indicates the increase in
shareholders' value resulting from operations
Balance Sheet Shows and organization's financial position at a
particular point in time
