Adventis FMC Level 1 Exam Complete Solutions | Already Passed| Verified

financial statement communicates what? - - financial condition - results of operations - various other activities of an organization how board of directors use financial data... - - hold management accountable - make board-level decisions about corporate strategy how company management uses financial data... - - measure performance - make strategic, operating and financial decisions how creditors use financial data... - - measure creditworthiness - liquidity - bankruptcy risk how investors use financial data... - make decisions on buying/selling equity investments how acquirers use financial data... - - determine valuation - make investment decisionshow regulators use financial data... - determine whether company is operating according to regulations/law what does the income statement present? - results of operations over a period of time what is the purpose of the income statement? - to show whether the company made or lost money during the period reported what does the income statement indicate? - how revenues are translated into net income through subtracting expenses revenue (sales) - amount charged for the delivery of goods or services cost of sales (cogs) - - direct cost of producing revenue - Ex: raw materials, direct wages, etc.