ADVENTIS FINANCIAL MODELING COURSE
COMPREHENSIVE EXAM 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ how board of directors use financial data. Answer: - hold management
accountable
- make board-level decisions about corporate strategy
◉ how company management uses financial data. Answer: - measure
performance
- make strategic, operating and financial decisions
◉ how creditors use financial data. Answer: - measure creditworthiness
- liquidity
- bankruptcy risk
◉ how investors use financial data. Answer: make decisions on
buying/selling equity investments
◉ how acquirers use financial data. Answer: - determine valuation
- make investment decisions
,◉ how regulators use financial data. Answer: determine whether
company is operating according to regulations/law
◉ what does the income statement present? Answer: results of
operations over a period of time
◉ what is the purpose of the income statement? Answer: to show
whether the company made or lost money during the period reported
◉ what does the income statement indicate? Answer: how revenues are
translated into net income through subtracting expenses
◉ revenue (sales). Answer: amount charged for the delivery of goods or
services
◉ cost of sales (cogs). Answer: - direct cost of producing revenue
- Ex: raw materials, direct wages, etc.
◉ gross profit. Answer: - revenue - cogs
- indicates how efficiently labor and materials are used in the production
process
◉ operating expenses. Answer: - all other expenses required to run a
business
, - Ex: management salaries, marketing, travel, etc.
◉ operating income (EBIT). Answer: - revenue - cogs - operating
expenses
- indicates a company's earning power from ongoing operations
◉ non-operating expenses. Answer: - expenses not related to regular
business of the company
- Ex: interest expense, restructuring expense, etc.
◉ corporate taxes. Answer: local and federal income taxes the company
incurs
◉ net income (net earnings). Answer: - revenue - cogs - operating
expenses - non-operating expenses - taxes
- indicates increase in shareholders' value resulting from operations
◉ what does the balance sheet show? Answer: an organization's
financial position at a particular point in time
◉ what does the balance sheet disclose? Answer: - the resources an
organization controls (assets)
- the claims on those resources (liabilities and equity)
COMPREHENSIVE EXAM 2026 QUESTIONS
WITH ANSWERS GRADED A+
◉ how board of directors use financial data. Answer: - hold management
accountable
- make board-level decisions about corporate strategy
◉ how company management uses financial data. Answer: - measure
performance
- make strategic, operating and financial decisions
◉ how creditors use financial data. Answer: - measure creditworthiness
- liquidity
- bankruptcy risk
◉ how investors use financial data. Answer: make decisions on
buying/selling equity investments
◉ how acquirers use financial data. Answer: - determine valuation
- make investment decisions
,◉ how regulators use financial data. Answer: determine whether
company is operating according to regulations/law
◉ what does the income statement present? Answer: results of
operations over a period of time
◉ what is the purpose of the income statement? Answer: to show
whether the company made or lost money during the period reported
◉ what does the income statement indicate? Answer: how revenues are
translated into net income through subtracting expenses
◉ revenue (sales). Answer: amount charged for the delivery of goods or
services
◉ cost of sales (cogs). Answer: - direct cost of producing revenue
- Ex: raw materials, direct wages, etc.
◉ gross profit. Answer: - revenue - cogs
- indicates how efficiently labor and materials are used in the production
process
◉ operating expenses. Answer: - all other expenses required to run a
business
, - Ex: management salaries, marketing, travel, etc.
◉ operating income (EBIT). Answer: - revenue - cogs - operating
expenses
- indicates a company's earning power from ongoing operations
◉ non-operating expenses. Answer: - expenses not related to regular
business of the company
- Ex: interest expense, restructuring expense, etc.
◉ corporate taxes. Answer: local and federal income taxes the company
incurs
◉ net income (net earnings). Answer: - revenue - cogs - operating
expenses - non-operating expenses - taxes
- indicates increase in shareholders' value resulting from operations
◉ what does the balance sheet show? Answer: an organization's
financial position at a particular point in time
◉ what does the balance sheet disclose? Answer: - the resources an
organization controls (assets)
- the claims on those resources (liabilities and equity)
