ADVENTIS FMC LEVEL 1 FINAL PAPER 2026
EXAM STUDY SHEET VIEW AHEAD EXAM
GRADED A+
⩥ what is the cash flow statement useful for in determining Answer: -
a company's viability; it's ability to pay bills
- liquidity
⩥ cash from operating activities Answer: - cash generated by a
company's normal business operations
- Ex: net earnings, depreciation and amortization, change in working
capital
⩥ cash from investing activities Answer: - acquisition and disposal of
long-term investments (PPE and M&A)
- Ex: capital expenditures, acquisitions
⩥ cash from financing activities Answer: - cash flow between
organization and its owners and creditors
- Ex: debt/equity issuances (change in debt), dividends, share
repurchases
⩥ beginning cash balance Answer: ending cash balance for previous
period of time
, ⩥ change in cash Answer: sum of cash from operating, investing, and
financing activities
⩥ ending cash balance Answer: sum of beginning cash balance and
change in cash
⩥ depreciation and amortization Answer: method of allocating the
cost of an asset over its useful life for both accounting and tax
purposes
⩥ how is depreciation and amortization shown on the income
statement? Answer: as an expense
⩥ why doesn't depreciation and amortization represent a decrease in
cash? Answer: it doesn't represent a decrease in cash because cash
only leaves the company during the initial purchase of the asset
(CapEx)
⩥ what does depreciation and amortization represent in terms of cash
on the cash flow statement? Answer: a source of cash
⩥ capital expenditures (CapEx) Answer: funds used by a company to
purchase/upgrade physical assets (PPE)
⩥ what does CapEx represent in terms of cash on the cash flow
statement? Answer: a use of cash
EXAM STUDY SHEET VIEW AHEAD EXAM
GRADED A+
⩥ what is the cash flow statement useful for in determining Answer: -
a company's viability; it's ability to pay bills
- liquidity
⩥ cash from operating activities Answer: - cash generated by a
company's normal business operations
- Ex: net earnings, depreciation and amortization, change in working
capital
⩥ cash from investing activities Answer: - acquisition and disposal of
long-term investments (PPE and M&A)
- Ex: capital expenditures, acquisitions
⩥ cash from financing activities Answer: - cash flow between
organization and its owners and creditors
- Ex: debt/equity issuances (change in debt), dividends, share
repurchases
⩥ beginning cash balance Answer: ending cash balance for previous
period of time
, ⩥ change in cash Answer: sum of cash from operating, investing, and
financing activities
⩥ ending cash balance Answer: sum of beginning cash balance and
change in cash
⩥ depreciation and amortization Answer: method of allocating the
cost of an asset over its useful life for both accounting and tax
purposes
⩥ how is depreciation and amortization shown on the income
statement? Answer: as an expense
⩥ why doesn't depreciation and amortization represent a decrease in
cash? Answer: it doesn't represent a decrease in cash because cash
only leaves the company during the initial purchase of the asset
(CapEx)
⩥ what does depreciation and amortization represent in terms of cash
on the cash flow statement? Answer: a source of cash
⩥ capital expenditures (CapEx) Answer: funds used by a company to
purchase/upgrade physical assets (PPE)
⩥ what does CapEx represent in terms of cash on the cash flow
statement? Answer: a use of cash
