Adventis Financial Modeling Level 1 Certification Questions and Answers |Graded A+

ncome StatementPresents the results of operations over a period of time, typically monthly, quarterly and/or annually Income StatementThe 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 StatementDisplays 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 Profitcalculated as revenue less cost of sales and indicates how efficiently labor and supplies are used in the production process Operating ExpensesAll 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 operation