Multiple Choice section of Adventis
Certification level 1 UPDATED Actual
Exam Questions and CORRECT Answers
What are the three financial statements, and what do they do - CORRECT ANSWER✔✔-
income statement, balance sheet, cf statement
they communicate the finanical conditions, results of operations, and other activties of an
organization. The three finanical statements provide info to various stakeholders.
How does the board of directors use finanical statements? - CORRECT ANSWER✔✔- to
hold mgmt acountable, make board-level decisions about corporate strategy
company mgmt-- how do they use fina statements? - CORRECT ANSWER✔✔- to measure
performance and make strategic, operating and financial decisions
Creditors- how do they use fina statements - CORRECT ANSWER✔✔- to measure credit
worthiness, liqudity, and bankruptcy risk
investors-- how do they use fina statements? - CORRECT ANSWER✔✔- to make decisions
on buying or selling equity investments
acquirers-- how do they use fina statements? - CORRECT ANSWER✔✔- to determine
valuation and make investment decisions
regulators - CORRECT ANSWER✔✔- they use fina statements to determine whether the
company is operating according to regulations and the law
The income statement does what
what is its purpose - CORRECT ANSWER✔✔- the income statement presents the results of
operations (profitability) over a period of time.
The purpose of the income statement is to show stakeholders whether the company made or
lost money during the period reported.
, THE INCOME STATEMENT
Revenue(sales) is ________. - CORRECT ANSWER✔✔- the amount charged for the
delivery of goods or services.
cogs is - CORRECT ANSWER✔✔- the direct cost of producing revenue. (RM, wages, etc.)
Gross profit is ___. - CORRECT ANSWER✔✔- revenue- cogs
it indicates how efficiently lbaor and supplies are used in the production process.
operating expenses are - CORRECT ANSWER✔✔- all other expenses required to run the
business (marketing, travel, mgmt salaries)
Operating income, aka ___, is _____. - CORRECT ANSWER✔✔- EBIT
revenue- cogs-operating expenses
it indicates a companies earning power from ongoing operations
Non-operating expenses are - CORRECT ANSWER✔✔- expenses not related to the regular
business of the company. (interest expense, restructuring expense, etc.)
Net income//net earnings are
Net earnings indicates the - CORRECT ANSWER✔✔- revenue- all exepsens of the company
increase in shareholder value resulting from operations
THE BALANCE SHEET
it shows______ at a particular _____.
the basic set up is _____.
Certification level 1 UPDATED Actual
Exam Questions and CORRECT Answers
What are the three financial statements, and what do they do - CORRECT ANSWER✔✔-
income statement, balance sheet, cf statement
they communicate the finanical conditions, results of operations, and other activties of an
organization. The three finanical statements provide info to various stakeholders.
How does the board of directors use finanical statements? - CORRECT ANSWER✔✔- to
hold mgmt acountable, make board-level decisions about corporate strategy
company mgmt-- how do they use fina statements? - CORRECT ANSWER✔✔- to measure
performance and make strategic, operating and financial decisions
Creditors- how do they use fina statements - CORRECT ANSWER✔✔- to measure credit
worthiness, liqudity, and bankruptcy risk
investors-- how do they use fina statements? - CORRECT ANSWER✔✔- to make decisions
on buying or selling equity investments
acquirers-- how do they use fina statements? - CORRECT ANSWER✔✔- to determine
valuation and make investment decisions
regulators - CORRECT ANSWER✔✔- they use fina statements to determine whether the
company is operating according to regulations and the law
The income statement does what
what is its purpose - CORRECT ANSWER✔✔- the income statement presents the results of
operations (profitability) over a period of time.
The purpose of the income statement is to show stakeholders whether the company made or
lost money during the period reported.
, THE INCOME STATEMENT
Revenue(sales) is ________. - CORRECT ANSWER✔✔- the amount charged for the
delivery of goods or services.
cogs is - CORRECT ANSWER✔✔- the direct cost of producing revenue. (RM, wages, etc.)
Gross profit is ___. - CORRECT ANSWER✔✔- revenue- cogs
it indicates how efficiently lbaor and supplies are used in the production process.
operating expenses are - CORRECT ANSWER✔✔- all other expenses required to run the
business (marketing, travel, mgmt salaries)
Operating income, aka ___, is _____. - CORRECT ANSWER✔✔- EBIT
revenue- cogs-operating expenses
it indicates a companies earning power from ongoing operations
Non-operating expenses are - CORRECT ANSWER✔✔- expenses not related to the regular
business of the company. (interest expense, restructuring expense, etc.)
Net income//net earnings are
Net earnings indicates the - CORRECT ANSWER✔✔- revenue- all exepsens of the company
increase in shareholder value resulting from operations
THE BALANCE SHEET
it shows______ at a particular _____.
the basic set up is _____.
