Adventis FMC Level 1 Updated Questions with 100% Correct Answers | Verified |
Latest Update
financial statement communicates what? - (ANSWER)- financial condition
- results of operations
- various other activities of an organization
how board of directors use financial data... - (ANSWER)- hold management accountable - make board-
level decisions about corporate strategy
how company management uses financial data... - (ANSWER)- measure performance
- make strategic, operating and financial decisions
how creditors use financial data... - (ANSWER)- measure creditworthiness
- liquidity
- bankruptcy risk
how investors use financial data... - (ANSWER)make decisions on buying/selling equity investments
how acquirers use financial data... - (ANSWER)- determine valuation
- make investment decisions
how regulators use financial data... - (ANSWER)determine whether company is operating according to
regulations/law
what does the income statement present? - (ANSWER)results of operations over a period of time
what is the purpose of the income statement? - (ANSWER)to show whether the company made or lost
money during the period reported
what does the income statement indicate? - (ANSWER)how revenues are translated into net income
through subtracting expenses
, Adventis FMC Level 1 Updated Questions with 100% Correct Answers | Verified |
Latest Update
revenue (sales) - (ANSWER)amount charged for the delivery of goods or services
cost of sales (cogs) - (ANSWER)- direct cost of producing revenue
- Ex: raw materials, direct wages, etc.
gross profit - (ANSWER)- revenue - cogs
- indicates how efficiently labor and materials are used in the production process
operating expenses - (ANSWER)- all other expenses required to run a business
- Ex: management salaries, marketing, travel, etc.
operating income (EBIT) - (ANSWER)- revenue - cogs - operating expenses
- indicates a company's earning power from ongoing operations
non-operating expenses - (ANSWER)- expenses not related to regular business of the company
- Ex: interest expense, restructuring expense, etc.
corporate taxes - (ANSWER)local and federal income taxes the company incurs
net income (net earnings) - (ANSWER)- revenue - cogs - operating expenses - non-operating expenses -
taxes
- indicates increase in shareholders' value resulting from operations
what does the balance sheet show? - (ANSWER)an organization's financial position at a particular point
in time
what does the balance sheet disclose? - (ANSWER)- the resources an organization controls (assets)
Latest Update
financial statement communicates what? - (ANSWER)- financial condition
- results of operations
- various other activities of an organization
how board of directors use financial data... - (ANSWER)- hold management accountable - make board-
level decisions about corporate strategy
how company management uses financial data... - (ANSWER)- measure performance
- make strategic, operating and financial decisions
how creditors use financial data... - (ANSWER)- measure creditworthiness
- liquidity
- bankruptcy risk
how investors use financial data... - (ANSWER)make decisions on buying/selling equity investments
how acquirers use financial data... - (ANSWER)- determine valuation
- make investment decisions
how regulators use financial data... - (ANSWER)determine whether company is operating according to
regulations/law
what does the income statement present? - (ANSWER)results of operations over a period of time
what is the purpose of the income statement? - (ANSWER)to show whether the company made or lost
money during the period reported
what does the income statement indicate? - (ANSWER)how revenues are translated into net income
through subtracting expenses
, Adventis FMC Level 1 Updated Questions with 100% Correct Answers | Verified |
Latest Update
revenue (sales) - (ANSWER)amount charged for the delivery of goods or services
cost of sales (cogs) - (ANSWER)- direct cost of producing revenue
- Ex: raw materials, direct wages, etc.
gross profit - (ANSWER)- revenue - cogs
- indicates how efficiently labor and materials are used in the production process
operating expenses - (ANSWER)- all other expenses required to run a business
- Ex: management salaries, marketing, travel, etc.
operating income (EBIT) - (ANSWER)- revenue - cogs - operating expenses
- indicates a company's earning power from ongoing operations
non-operating expenses - (ANSWER)- expenses not related to regular business of the company
- Ex: interest expense, restructuring expense, etc.
corporate taxes - (ANSWER)local and federal income taxes the company incurs
net income (net earnings) - (ANSWER)- revenue - cogs - operating expenses - non-operating expenses -
taxes
- indicates increase in shareholders' value resulting from operations
what does the balance sheet show? - (ANSWER)an organization's financial position at a particular point
in time
what does the balance sheet disclose? - (ANSWER)- the resources an organization controls (assets)
