Multiple Choice section of Adventis Certification level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Multiple%20Ch
Adventis Certification level 1 Questions &
Answers Multiple Choice section
1. What are the three financial statements, and what do they do
Answer income state- ment, balance sheet, cf statement
they communicate the finanical conditions, results of operations, and other activties of
an organization. The three finanical statements provide info to various stakehold- ers.
2. How does the board of directors use finanical statements?
Answer to hold mgmt acountable, make board-level decisions about corporate
strategy
3. company mgmt-- how do they use fina statements?
Answer to measure performance and make strategic, operating and financial
decisions
4. Creditors- how do they use fina statements
1/
1 of 25 11/18/2024, 3:23
,Multiple Choice section of Adventis Certification level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Multiple%20Ch
Answer to measure credit worthiness, liqudity, and bankruptcy risk
5. investors-- how do they use fina statements?
Answer to make decisions on buying or selling equity investments
6. acquirers-- how do they use fina statements?
Answer to determine valuation and make investment decisions
7. regulators
Answer they use fina statements to determine whether the company is oper- ating
according to regulations and the law
8. The income statement does what
what is its purpose
Answer the income statement presents the results of operations (profitability) over a
period of time.
The purpose of the income statement is to show stakeholders whether the company
made or lost money during the period reported.
2/
2 of 25 11/18/2024, 3:23
,Multiple Choice section of Adventis Certification level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Multiple%20Ch
9. THE INCOME STATEMENT
Revenue(sales) is .
Answer the amount charged for the delivery of goods or services.
10. cogs is
Answer the direct cost of producing revenue. (RM, wages, etc.)
11. Gross profit is .
Answer revenue- cogs
it indicates how efficiently lbaor and supplies are used in the production process.
12. operating expenses are
Answer all other expenses required to run the business (mar- keting, travel, mgmt
salaries)
13. Operating income, aka , is .
Answer EBIT revenue- cogs-operating expenses
3/
3 of 25 11/18/2024, 3:23
Adventis Certification level 1 Questions &
Answers Multiple Choice section
1. What are the three financial statements, and what do they do
Answer income state- ment, balance sheet, cf statement
they communicate the finanical conditions, results of operations, and other activties of
an organization. The three finanical statements provide info to various stakehold- ers.
2. How does the board of directors use finanical statements?
Answer to hold mgmt acountable, make board-level decisions about corporate
strategy
3. company mgmt-- how do they use fina statements?
Answer to measure performance and make strategic, operating and financial
decisions
4. Creditors- how do they use fina statements
1/
1 of 25 11/18/2024, 3:23
,Multiple Choice section of Adventis Certification level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Multiple%20Ch
Answer to measure credit worthiness, liqudity, and bankruptcy risk
5. investors-- how do they use fina statements?
Answer to make decisions on buying or selling equity investments
6. acquirers-- how do they use fina statements?
Answer to determine valuation and make investment decisions
7. regulators
Answer they use fina statements to determine whether the company is oper- ating
according to regulations and the law
8. The income statement does what
what is its purpose
Answer the income statement presents the results of operations (profitability) over a
period of time.
The purpose of the income statement is to show stakeholders whether the company
made or lost money during the period reported.
2/
2 of 25 11/18/2024, 3:23
,Multiple Choice section of Adventis Certification level 1.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Multiple%20Ch
9. THE INCOME STATEMENT
Revenue(sales) is .
Answer the amount charged for the delivery of goods or services.
10. cogs is
Answer the direct cost of producing revenue. (RM, wages, etc.)
11. Gross profit is .
Answer revenue- cogs
it indicates how efficiently lbaor and supplies are used in the production process.
12. operating expenses are
Answer all other expenses required to run the business (mar- keting, travel, mgmt
salaries)
13. Operating income, aka , is .
Answer EBIT revenue- cogs-operating expenses
3/
3 of 25 11/18/2024, 3:23
