Adventis FMC Level 1 questions and answers

What do Financial Statements Communicate? - ans 1. Financial condition of an organization 2. Results of operations of an organization 3. Various other activities of an organization 3 Financial State Reports - ans 1. Income Statement 2. Balance Sheet 3. Cash Flow Statement Why do Board of Directors Use Financial Statements? - ans To hold management accountable and make board-level decisions about corporate strategy. Why does Company Management Use Financial Statements? - ans To measure performance and make strategic, operating, and financial decisions. Why do Creditors Use Financial Statements? - ans To measure Creditworthiness, liquidity and bankruptcy risk. Why do Investors Use Financial Statements? - ans To make decisions on buying and selling equity investments.