Adventis FMC Level 1 MC Practice questions |/ |/ |/ |/ |/ |/
with answers
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what is the purpose of the income statement?
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What does it indicate? - CORRECT ANSWERS ✔✔to show
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stakeholders if the firm made or lost money during the period
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being reported
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it indicates how revenues are transformed into net income
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define: |/
Revenue - CORRECT ANSWERS ✔✔the amount charged for the
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delivery of goods and services
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define: |/
COGS - CORRECT ANSWERS ✔✔direct costs of producing revenue
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define: |/
Operating Expense - CORRECT ANSWERS ✔✔all other expenses
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required to run the business
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what does Operating Income indicate?
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, -what is the other word for it? - CORRECT ANSWERS ✔✔Op
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income indicates a company's earnings power from ongoing
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operations
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Another work for Operating profit is EBIT
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what does net profit indicate for the shareholder? - CORRECT
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ANSWERS ✔✔indicates the increase in shareholder value
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resulting from the operations of the firm
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list the general flow of the income statement - CORRECT
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ANSWERS ✔✔revenue
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|/ (COGS) |/
Gross Profit |/
|/ (Operating expense) |/
Operating Income |/ |/
|/ (non Op Expense) |/ |/ |/
|/ (Tax) |/
Net Income |/
what does the balance sheet show - CORRECT ANSWERS ✔✔it is
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a financial statement that represents the financial position of the
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company on a particular date
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Balance sheet: |/ |/
Assets are what the company _____, Liabilities are what the
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company _____, and equity is the ------ ------- of shareholders
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with answers
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what is the purpose of the income statement?
|/ |/ |/ |/ |/ |/ |/ |/
What does it indicate? - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔the amount charged for the
|/ |/ |/ |/ |/ |/ |/ |/
delivery of goods and services
|/ |/ |/ |/ |/
define: |/
COGS - CORRECT ANSWERS ✔✔direct costs of producing revenue
|/ |/ |/ |/ |/ |/ |/ |/
define: |/
Operating Expense - CORRECT ANSWERS ✔✔all other expenses
|/ |/ |/ |/ |/ |/ |/
required to run the business
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what does Operating Income indicate?
|/ |/ |/ |/ |/
, -what is the other word for it? - CORRECT ANSWERS ✔✔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? - CORRECT
|/ |/ |/ |/ |/ |/ |/ |/ |/
ANSWERS ✔✔indicates the increase in shareholder value
|/ |/ |/ |/ |/ |/ |/
resulting from the operations of the firm
|/ |/ |/ |/ |/ |/ |/
list the general flow of the income statement - CORRECT
|/ |/ |/ |/ |/ |/ |/ |/ |/
ANSWERS ✔✔revenue
|/ |/ |/
|/ (COGS) |/
Gross Profit |/
|/ (Operating expense) |/
Operating Income |/ |/
|/ (non Op Expense) |/ |/ |/
|/ (Tax) |/
Net Income |/
what does the balance sheet show - CORRECT ANSWERS ✔✔it is
|/ |/ |/ |/ |/ |/ |/ |/ |/ |/
a financial statement that represents the financial position of the
|/ |/ |/ |/ |/ |/ |/ |/ |/ |/
company on a particular date
|/ |/ |/ |/ |/
Balance sheet: |/ |/
Assets are what the company _____, Liabilities are what the
|/ |/ |/ |/ |/ |/ |/ |/ |/
company _____, and equity is the ------ ------- of shareholders
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