Adventis FMC Level 1 MC COMPLETE (2025) EXAM TEST WITH LATEST UPDATED (QUESTIONS AND ANSWERS)

Adventis FMC Level 1 MC COMPLETE (2025) EXAM TEST WITH LATEST UPDATED (QUESTIONS AND
ANSWERS)




Adventis FMC Level 1 MC COMPLETE (2025)
EXAM TEST WITH LATEST UPDATED
(QUESTIONS AND ANSWERS)
Question 1
financial statement communicates what?
Correct Answer
- financial condition
- results of operations
- various other activities of an organization



Question 2
how board of directors use financial data...
Correct Answer
- hold management accountable - make board-level decisions about corporate
strategy



Question 3
how company management uses financial data...
Correct Answer
- measure performance
- make strategic, operating and financial decisions



Question 4
how creditors use financial data...
Correct Answer
- measure creditworthiness
- liquidity
- bankruptcy risk




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,Adventis FMC Level 1 MC COMPLETE (2025) EXAM TEST WITH LATEST UPDATED (QUESTIONS AND
ANSWERS)




Question 5
how investors use financial data...
Correct Answer
make decisions on buying/selling equity investments



Question 6
how acquirers use financial data...
Correct Answer
- determine valuation
- make investment decisions



Question 7
how regulators use financial data...
Correct Answer
determine whether company is operating according to regulations/law



Question 8
what does the income statement present?
Correct Answer
results of operations over a period of time



Question 9
what is the purpose of the income statement?
Correct Answer
to show whether the company made or lost money during the period reported



Question 10
what does the income statement indicate?
Correct Answer
how revenues are translated into net income through subtracting expenses




Page 2 of 27

, Adventis FMC Level 1 MC COMPLETE (2025) EXAM TEST WITH LATEST UPDATED (QUESTIONS AND
ANSWERS)




Question 11
revenue (sales)
Correct Answer
amount charged for the delivery of goods or services



Question 12
cost of sales (cogs)
Correct Answer
- direct cost of producing revenue
- Ex: raw materials, direct wages, etc.



Question 13
gross profit
Correct Answer
- revenue - cogs
- indicates how efficiently labor and materials are used in the production process



Question 14
operating expenses
Correct Answer
- all other expenses required to run a business
- Ex: management salaries, marketing, travel, etc.



Question 15
operating income (EBIT)
Correct Answer
- revenue - cogs - operating expenses
- indicates a company's earning power from ongoing operations




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