Adventis UPDATED Actual Exam
Questions and CORRECT Answers
Financial Statements - CORRECT ANSWER✔✔- income statement + balance sheet + cash
flow statement.
communicate the financial condition.
Income Statement - CORRECT ANSWER✔✔- presents the results of operations over a
period of time.
shows stakeholders whether the compay made or lost money.
Revenue/Sales - CORRECT ANSWER✔✔- in income statement.
number charged for the delivery of goods or services.
Cost of Sales/Cost of Goods Sold - CORRECT ANSWER✔✔- in income statement.
direct cost of producing revenue.
Gross Profit - CORRECT ANSWER✔✔- in income statement.
revenue - cost of sales.
indicates how efficiently labor + supplies are used in the production process.
Operating Expenses - CORRECT ANSWER✔✔- in income statement.
all other expenses required to run the business.
Operating Income/EBIT - CORRECT ANSWER✔✔- in income statement.
revenue - (cost of sales + operating expenses).
indicates a company's earning power from ongoing operations.
Non-Operating Expenses - CORRECT ANSWER✔✔- in income statement.
expenses or income not related to the regular business of the company.
, Corporate Taxes - CORRECT ANSWER✔✔- in income statement.
local + federal taxes the company incurs.
Net Income/Net Earnings - CORRECT ANSWER✔✔- in income statement.
revenue - all expenses.
indicates the increase in shareholders' value resulting from operations.
Balance Sheet - CORRECT ANSWER✔✔- shows an organization's financial position at a
particular point in time.
discloses the resources an organization controls + the claims on those resources.
Cash - CORRECT ANSWER✔✔- in balance sheet.
current assets comprising currency or currency equivalents that can be accessed immediately.
Accounts Receivable - CORRECT ANSWER✔✔- in balance sheet.
the amount owed to an organization from the sale of its products or services.
Fixed Assets - CORRECT ANSWER✔✔- in balance sheet.
the value of assets + property that cannot easily be converted to cash + has a useful life of
greater than 1 year.
Accounts Payable - CORRECT ANSWER✔✔- in balance sheet.
the amount owed to an organization's vendors.
Debt - CORRECT ANSWER✔✔- in balance sheet.
the amount of obligations owed to creditors.
less expensive form of capital, because less risky.
debt owners typically have priority claim on a company's assets if the company goes
bankrupt.
Questions and CORRECT Answers
Financial Statements - CORRECT ANSWER✔✔- income statement + balance sheet + cash
flow statement.
communicate the financial condition.
Income Statement - CORRECT ANSWER✔✔- presents the results of operations over a
period of time.
shows stakeholders whether the compay made or lost money.
Revenue/Sales - CORRECT ANSWER✔✔- in income statement.
number charged for the delivery of goods or services.
Cost of Sales/Cost of Goods Sold - CORRECT ANSWER✔✔- in income statement.
direct cost of producing revenue.
Gross Profit - CORRECT ANSWER✔✔- in income statement.
revenue - cost of sales.
indicates how efficiently labor + supplies are used in the production process.
Operating Expenses - CORRECT ANSWER✔✔- in income statement.
all other expenses required to run the business.
Operating Income/EBIT - CORRECT ANSWER✔✔- in income statement.
revenue - (cost of sales + operating expenses).
indicates a company's earning power from ongoing operations.
Non-Operating Expenses - CORRECT ANSWER✔✔- in income statement.
expenses or income not related to the regular business of the company.
, Corporate Taxes - CORRECT ANSWER✔✔- in income statement.
local + federal taxes the company incurs.
Net Income/Net Earnings - CORRECT ANSWER✔✔- in income statement.
revenue - all expenses.
indicates the increase in shareholders' value resulting from operations.
Balance Sheet - CORRECT ANSWER✔✔- shows an organization's financial position at a
particular point in time.
discloses the resources an organization controls + the claims on those resources.
Cash - CORRECT ANSWER✔✔- in balance sheet.
current assets comprising currency or currency equivalents that can be accessed immediately.
Accounts Receivable - CORRECT ANSWER✔✔- in balance sheet.
the amount owed to an organization from the sale of its products or services.
Fixed Assets - CORRECT ANSWER✔✔- in balance sheet.
the value of assets + property that cannot easily be converted to cash + has a useful life of
greater than 1 year.
Accounts Payable - CORRECT ANSWER✔✔- in balance sheet.
the amount owed to an organization's vendors.
Debt - CORRECT ANSWER✔✔- in balance sheet.
the amount of obligations owed to creditors.
less expensive form of capital, because less risky.
debt owners typically have priority claim on a company's assets if the company goes
bankrupt.
