Financial Modeling Course Exam Questions with
Correct Answers | Guaranteed Success
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Determine valuation and make investment decisions
Choose an answer
1 Board of Directors 2 Acquirers
3 Corporate Taxes 4 Regulators
Don't know?
Terms in this set (57)
, Hold management accountable and make board-
Board of Directors
level decisions about corporate strategy
Measure performance and make strategic, operating
Company Management
and financial decisions
Measure creditworthiness, liquidity and bankruptcy
Creditors
risk
Make decisions on buying or selling equity
Investors
investments
Acquirers Determine valuation and make investment decisions
Determine whether the company is operating
Regulators
according to regulations and the law
Presents the results of operations (e.g. profitability)
over a period of time, typically monthly, quarterly
and/or annually. Purpose is to show stakeholders
whether the company made or lost money during the
Income Statement
period being reported. It indicates how revenues are
transformed into net income. It displays the revenues
recognized for a specific period of time and the
expenses charged against those revenues.
Revenue (sales) amount charged for the delivery of goods or services
Cost of Sales (Cost of is the direct cost of producing revenue (raw
Goods Sold) materials, direct wages, etc.)
calculated as revenue less cost of sales and indicates
Gross Profit how efficiently labor
and supplies are used in the production process
all other expenses required to run the business
Operating Expenses (management
salaries, marketing, travel, etc.)
calculated as revenue less cost of sales and operating
Operating Income (EBIT) expenses and indicates a company's earning power
from ongoing operations
Correct Answers | Guaranteed Success
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Determine valuation and make investment decisions
Choose an answer
1 Board of Directors 2 Acquirers
3 Corporate Taxes 4 Regulators
Don't know?
Terms in this set (57)
, Hold management accountable and make board-
Board of Directors
level decisions about corporate strategy
Measure performance and make strategic, operating
Company Management
and financial decisions
Measure creditworthiness, liquidity and bankruptcy
Creditors
risk
Make decisions on buying or selling equity
Investors
investments
Acquirers Determine valuation and make investment decisions
Determine whether the company is operating
Regulators
according to regulations and the law
Presents the results of operations (e.g. profitability)
over a period of time, typically monthly, quarterly
and/or annually. Purpose is to show stakeholders
whether the company made or lost money during the
Income Statement
period being reported. It indicates how revenues are
transformed into net income. It displays the revenues
recognized for a specific period of time and the
expenses charged against those revenues.
Revenue (sales) amount charged for the delivery of goods or services
Cost of Sales (Cost of is the direct cost of producing revenue (raw
Goods Sold) materials, direct wages, etc.)
calculated as revenue less cost of sales and indicates
Gross Profit how efficiently labor
and supplies are used in the production process
all other expenses required to run the business
Operating Expenses (management
salaries, marketing, travel, etc.)
calculated as revenue less cost of sales and operating
Operating Income (EBIT) expenses and indicates a company's earning power
from ongoing operations
