ADVENTIS FMC LEVEL 1 ACTUAL EXAM
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ 3 Financial State Reports Answer: 1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
⩥ Why do Board of Directors Use Financial Statements? Answer: To
hold management accountable and make board-level decisions about
corporate strategy.
⩥ Why does Company Management Use Financial Statements?
Answer: To measure performance and make strategic, operating, and
financial decisions.
⩥ Why do Creditors Use Financial Statements? Answer: To measure
Creditworthiness, liquidity and bankruptcy risk.
⩥ Why do Investors Use Financial Statements? Answer: To make
decisions on buying and selling equity investments.
⩥ Why do Acquirers Use Financial Statements? Answer: To
determine valuations and make investment decisions.
, ⩥ Why do Regulators Use Financial Statements? Answer: To
determine whether or not a company is operating according to
regulations and the law.
⩥ Income Statement Answer: Reports a company's revenues and
expenses and resulting net earnings or net loss for a specific period of
time.
Purpose is to show stakeholders the money made or lost by the
company during the given period
⩥ Revenue Answer: The amount charged for the delivery of goods or
services.
⩥ Cost of Sales (Cost of Goods Sold) Answer: The direct cost of
producing revenue (raw materials, direct wages. etc.)
⩥ Gross Profit Answer: Revenue less Cost of Goods Sold
Indicates how efficiently labor and supplies are used in the production
process.
⩥ Operating Expenses Answer: All other expenses to run the business
(management salaries, marketing, travel, etc.)
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ 3 Financial State Reports Answer: 1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
⩥ Why do Board of Directors Use Financial Statements? Answer: To
hold management accountable and make board-level decisions about
corporate strategy.
⩥ Why does Company Management Use Financial Statements?
Answer: To measure performance and make strategic, operating, and
financial decisions.
⩥ Why do Creditors Use Financial Statements? Answer: To measure
Creditworthiness, liquidity and bankruptcy risk.
⩥ Why do Investors Use Financial Statements? Answer: To make
decisions on buying and selling equity investments.
⩥ Why do Acquirers Use Financial Statements? Answer: To
determine valuations and make investment decisions.
, ⩥ Why do Regulators Use Financial Statements? Answer: To
determine whether or not a company is operating according to
regulations and the law.
⩥ Income Statement Answer: Reports a company's revenues and
expenses and resulting net earnings or net loss for a specific period of
time.
Purpose is to show stakeholders the money made or lost by the
company during the given period
⩥ Revenue Answer: The amount charged for the delivery of goods or
services.
⩥ Cost of Sales (Cost of Goods Sold) Answer: The direct cost of
producing revenue (raw materials, direct wages. etc.)
⩥ Gross Profit Answer: Revenue less Cost of Goods Sold
Indicates how efficiently labor and supplies are used in the production
process.
⩥ Operating Expenses Answer: All other expenses to run the business
(management salaries, marketing, travel, etc.)
