ADVENTIS FMC LEVEL 1 MC PRACTICE Exam with Correct Solutions 2024 Updated

ADVENTIS FMC LEVEL 1 MC PRACTICE Exam with Correct Solutions 2024 Updated what is the purpose of the income statement? What does it indicate? - Answer -to show stakeholders if the firm made or lost money during the period being reported it indicates how revenues are transformed into net income define: Revenue - Answer -the amount charged for the delivery of goods and services define: COGS - Answer -direct costs of producing revenue define: Operating Expense - Answer -all other expenses required to run the business what does Operating Income indicate? -what is the other word for it? - Answer -Op income indicates a company's earnings power from ongoing operations Another work for Operating profit is EBIT what does net profit indicate for the shareholder? - Answer -indicates the increase in shareholder value resulting from the operations of the firm list the general flow of the income statement - Answer -revenue (COGS) Gross Profit (Operating expense)