Adventis Certification I Multiple Choice Exam Study Guide

What do the the three Financial Statements communicate? - ans - The financial condition, results of operations, and various other activities of an organization - *They provide a considerable amount of information to various stakeholders that enable them to make decisions* Board of Directors - ans Hold management accountable and make board-level decisions about corporate strategy Company Management - ans Measure performance and make strategic, operating and financial decisions Creditors - ans Measure creditworthiness, liquidity, and bankruptcy risk Investors - ans Make decisions on buying or selling equity investments Acquirers - ans Determine valuation and make investment decisions Regulators - ans Determine whether the company is operating according to regulations and the law Income Statement - ans - Presents the results of operations over a period of time