Adventis FMC Level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Adventis%20F
Adventis FMC Level 1 Questions & Answers
1. financial statement communicates what?
Answer - financial condition
- results of operations
- various other activities of an organization
2. how board of directors use financial data...
Answer - hold management accountable
- make board-level decisions about corporate strategy
3. how company management uses financial data...
Answer - measure performance
- make strategic, operating and financial decisions
4. how creditors use financial data...
Answer - measure creditworthiness
- liquidity
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,Adventis FMC Level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Adventis%20F
- bankruptcy risk
5. how investors use financial data...
Answer make decisions on buying/selling equityinvestments
6. how acquirers use financial data...
Answer - determine valuation
- make investment decisions
7. how regulators use financial data...
Answer determine whether company is operatingaccording to regulations/law
8. what does the income statement present?
Answer results of operations over a periodof time
9. what is the purpose of the income statement?
Answer to show whether the companymade or lost money during the period
reported
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,Adventis FMC Level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Adventis%20F
10. what does the income statement indicate?
Answer how revenues are translated intonet income through subtracting expenses
11. revenue (sales)
Answer amount charged for the delivery of goods or services
12. cost of sales (cogs)
Answer - direct cost of producing revenue
- Ex
raw materials, direct wages, etc.
13. gross profit
Answer - revenue - cogs
- indicates how efficiently labor and materials are used in the production process
14. operating expenses
Answer - all other expenses required to run a business
- Ex
management salaries, marketing, travel, etc.
3/7
3 of 23 11/18/2024, 3:13
Adventis FMC Level 1 Questions & Answers
1. financial statement communicates what?
Answer - financial condition
- results of operations
- various other activities of an organization
2. how board of directors use financial data...
Answer - hold management accountable
- make board-level decisions about corporate strategy
3. how company management uses financial data...
Answer - measure performance
- make strategic, operating and financial decisions
4. how creditors use financial data...
Answer - measure creditworthiness
- liquidity
1/7
1 of 23 11/18/2024, 3:13
,Adventis FMC Level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Adventis%20F
- bankruptcy risk
5. how investors use financial data...
Answer make decisions on buying/selling equityinvestments
6. how acquirers use financial data...
Answer - determine valuation
- make investment decisions
7. how regulators use financial data...
Answer determine whether company is operatingaccording to regulations/law
8. what does the income statement present?
Answer results of operations over a periodof time
9. what is the purpose of the income statement?
Answer to show whether the companymade or lost money during the period
reported
2/7
2 of 23 11/18/2024, 3:13
,Adventis FMC Level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Adventis%20F
10. what does the income statement indicate?
Answer how revenues are translated intonet income through subtracting expenses
11. revenue (sales)
Answer amount charged for the delivery of goods or services
12. cost of sales (cogs)
Answer - direct cost of producing revenue
- Ex
raw materials, direct wages, etc.
13. gross profit
Answer - revenue - cogs
- indicates how efficiently labor and materials are used in the production process
14. operating expenses
Answer - all other expenses required to run a business
- Ex
management salaries, marketing, travel, etc.
3/7
3 of 23 11/18/2024, 3:13
