ADVENTIS FMC LEVEL 1 CERTIFICATION
SCRIPT 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ what are the two objectives of financial modeling?.
Answer: 1. to arm decision making with reliable information2. and to
effectively communicate to stakeholders
◍ Non-Debt Current Liabilities.
Answer: Represent all obligations besides short-term debt that are due
within one-year. They appear on the company's balance sheet and include
accounts payable, accrued liabilities, and other obligations
◍ Current Ratio.
Answer: Indicates whether a company's short-term assets are readily
available to pay off its short-term liabilities
◍ Dividends: Firms with _____ Cash flows often implement a dividend payout
program. but the problem with payout programs is that ....
Answer: Firms with STABLE Cash flows often implement a dividend
payout program. but the problem with payout programs is that Dividends
become stick and expected. and any decrease to the program can indicate
TROUBLE for the firm.
◍ Market Ratios.
Answer: Evaluate the market price of a share of common stock and are an
indicator of a company's ability to generate profits or build assets
◍ Working Capital.
Answer: A measure of a company's efficiency and its short-term financial
health
, ◍ Dividend Yield.
Answer: Shows the return on a share of common stock
◍ Earnings per Share Formula.
Answer: Net Earnings/ Shares Outstanding
◍ Gross Profit.
Answer: calculated as revenue less cost of sales and indicates how
efficiently labor and supplies are used in the production process
◍ Equity.
Answer: Any remaining claims of shareholders against a company
◍ Debt-to-Equity.
Answer: Indicated the relative proportion of debt and equity used to finance
a company's assets
◍ Debt.
Answer: The amount of obligations owed to creditors
◍ Basic Accounting Equation.
Answer: Assets = Liabilities + Equity
◍ Revenue (Sales).
Answer: The amount charged for the delivery of goods or services
◍ list the 3 types of activities on the cash flow statement.
Answer: 1. cash from operations 2. cash from investing 3. cash from
financing
◍ Depreciation & Amortization.
Answer: A method of allocating the cost of an asset over its useful life for
both accounting and tax purposes
◍ Cash Flow Statement: - what does it show? - what does it reconcile?.
Answer: the cash flow statement shows how changes in the balance sheet
accounts and net income affect the cash balance of the firm it reconciles net
income to changes in cash
SCRIPT 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ what are the two objectives of financial modeling?.
Answer: 1. to arm decision making with reliable information2. and to
effectively communicate to stakeholders
◍ Non-Debt Current Liabilities.
Answer: Represent all obligations besides short-term debt that are due
within one-year. They appear on the company's balance sheet and include
accounts payable, accrued liabilities, and other obligations
◍ Current Ratio.
Answer: Indicates whether a company's short-term assets are readily
available to pay off its short-term liabilities
◍ Dividends: Firms with _____ Cash flows often implement a dividend payout
program. but the problem with payout programs is that ....
Answer: Firms with STABLE Cash flows often implement a dividend
payout program. but the problem with payout programs is that Dividends
become stick and expected. and any decrease to the program can indicate
TROUBLE for the firm.
◍ Market Ratios.
Answer: Evaluate the market price of a share of common stock and are an
indicator of a company's ability to generate profits or build assets
◍ Working Capital.
Answer: A measure of a company's efficiency and its short-term financial
health
, ◍ Dividend Yield.
Answer: Shows the return on a share of common stock
◍ Earnings per Share Formula.
Answer: Net Earnings/ Shares Outstanding
◍ Gross Profit.
Answer: calculated as revenue less cost of sales and indicates how
efficiently labor and supplies are used in the production process
◍ Equity.
Answer: Any remaining claims of shareholders against a company
◍ Debt-to-Equity.
Answer: Indicated the relative proportion of debt and equity used to finance
a company's assets
◍ Debt.
Answer: The amount of obligations owed to creditors
◍ Basic Accounting Equation.
Answer: Assets = Liabilities + Equity
◍ Revenue (Sales).
Answer: The amount charged for the delivery of goods or services
◍ list the 3 types of activities on the cash flow statement.
Answer: 1. cash from operations 2. cash from investing 3. cash from
financing
◍ Depreciation & Amortization.
Answer: A method of allocating the cost of an asset over its useful life for
both accounting and tax purposes
◍ Cash Flow Statement: - what does it show? - what does it reconcile?.
Answer: the cash flow statement shows how changes in the balance sheet
accounts and net income affect the cash balance of the firm it reconciles net
income to changes in cash
