Adventis Financial Modeling Certification (FMC)
Level 1 & 2 Exams (Latest 2023/ 2024 Updates
STUDY BUNDLE WITH COMPLETE SOLUTIONS)
Questions and Verified Answers| 100% Correct|
Grade A
Financial Statement - ANSWERSet of three integrated reports that communicate the
financial condition and results of operations of an organization. Provide information
to stakeholders that enable them to make informed decisions.
Income statement - ANSWERPresents the results of operations over a period of time
(monthly, quarterly, or annually). Starts with the revenue, takes out expenses, and
then spits out profit over that period of time.
Balance Sheet - ANSWERShows an organization's financial position at a point in time.
Consists of assets (what they own), the liabilities (what they owe), and the equity
(what's left over for investors).
Cash Flow Statement - ANSWERShows the inflows and outflows of cash over a period
of time. Divided into three buckets: operating cash flow (day to day operations of the
company), investing cash flow (long term assets and investments), financing cash
flows (how a company is funded; thinking about equity and debt).
Revenue (or Sales) - ANSWERThe amount charged for the delivery of goods or
services. Equation: Last year revenue x (1+% growth)
Cost of Sales (or Cost of Goods Sold) - ANSWERThe direct cost of producing revenue
(raw
materials, direct wages, etc.
Gross Profit - ANSWERIndicates how efficiently labor and supplies are used in the
production process. Revenue - cost of sales
Operating Expenses - ANSWERAll other expenses required to run the business
(management
salaries, marketing, travel, etc.)
Operating Income (or EBIT) - ANSWERIndicates a company's earning power from
ongoing operations. Equation: revenue - expenses (cost of sales and operating
expenses)
Non-Operating Expenses - ANSWERExpenses or income not related to the regular
business of
the company (interest expense, restructuring expenses, etc.
, Corporate Taxes - ANSWERLocal and federal income taxes the company incurs
Net Income (or Net Earnings) - ANSWERIndicates the increase in shareholders' value
resulting from operations. Equation: Income before last year's revenue (1+% growth)
- tax. Or, revenue - all expenses
% growth - ANSWER(current year revenue/last year revenue) - 1
% operating margin - ANSWERoperating income/revenue
% net margin - ANSWERnet income/revenue
Income before tax - ANSWERoperating income - non operating expenses
Corporate tax - ANSWERtax/income before tax
Cash - ANSWERCurrent assets comprising currency or currency equivalents that can
be accessed immediately
Accounts Receivable - ANSWERIs the amount owed to an organization from the sale
of its products or services
Fixed Assets - ANSWERThe value of assets and property that cannot easily be
converted to cash and has a useful life of greater than 1 year. An example of Fixed
Assets is Property, Plant & Equipment.
Accounts Payable - ANSWERThe amount owed to an organization's vendors
Debt - ANSWERThe amount of obligations owed to creditors
Equity - ANSWERCummulative shareholder investment plus cumulative net income
Non-Cash Current Assets - ANSWERRepresent all assets besides cash that are
expected to be converted into cash within one year. These assets appear on the
company's balance sheet and include accounts receivable, inventory, prepaid
expenses, and other assets
Non-Debt Current Liabilities - ANSWERRepresent all obligations besides short-term
debt that are due within one year. Current liabilities appear on the company's
balance sheet and include accounts payable, accrued liabilities, and other obligations
Net Debt - ANSWERIf we took all of our cash and paid down debt, what debt would
be left
Cash from Operating Activities - ANSWERThe amount of cash generated by an
organization's normal business operations. The most common line items included in
Level 1 & 2 Exams (Latest 2023/ 2024 Updates
STUDY BUNDLE WITH COMPLETE SOLUTIONS)
Questions and Verified Answers| 100% Correct|
Grade A
Financial Statement - ANSWERSet of three integrated reports that communicate the
financial condition and results of operations of an organization. Provide information
to stakeholders that enable them to make informed decisions.
Income statement - ANSWERPresents the results of operations over a period of time
(monthly, quarterly, or annually). Starts with the revenue, takes out expenses, and
then spits out profit over that period of time.
Balance Sheet - ANSWERShows an organization's financial position at a point in time.
Consists of assets (what they own), the liabilities (what they owe), and the equity
(what's left over for investors).
Cash Flow Statement - ANSWERShows the inflows and outflows of cash over a period
of time. Divided into three buckets: operating cash flow (day to day operations of the
company), investing cash flow (long term assets and investments), financing cash
flows (how a company is funded; thinking about equity and debt).
Revenue (or Sales) - ANSWERThe amount charged for the delivery of goods or
services. Equation: Last year revenue x (1+% growth)
Cost of Sales (or Cost of Goods Sold) - ANSWERThe direct cost of producing revenue
(raw
materials, direct wages, etc.
Gross Profit - ANSWERIndicates how efficiently labor and supplies are used in the
production process. Revenue - cost of sales
Operating Expenses - ANSWERAll other expenses required to run the business
(management
salaries, marketing, travel, etc.)
Operating Income (or EBIT) - ANSWERIndicates a company's earning power from
ongoing operations. Equation: revenue - expenses (cost of sales and operating
expenses)
Non-Operating Expenses - ANSWERExpenses or income not related to the regular
business of
the company (interest expense, restructuring expenses, etc.
, Corporate Taxes - ANSWERLocal and federal income taxes the company incurs
Net Income (or Net Earnings) - ANSWERIndicates the increase in shareholders' value
resulting from operations. Equation: Income before last year's revenue (1+% growth)
- tax. Or, revenue - all expenses
% growth - ANSWER(current year revenue/last year revenue) - 1
% operating margin - ANSWERoperating income/revenue
% net margin - ANSWERnet income/revenue
Income before tax - ANSWERoperating income - non operating expenses
Corporate tax - ANSWERtax/income before tax
Cash - ANSWERCurrent assets comprising currency or currency equivalents that can
be accessed immediately
Accounts Receivable - ANSWERIs the amount owed to an organization from the sale
of its products or services
Fixed Assets - ANSWERThe value of assets and property that cannot easily be
converted to cash and has a useful life of greater than 1 year. An example of Fixed
Assets is Property, Plant & Equipment.
Accounts Payable - ANSWERThe amount owed to an organization's vendors
Debt - ANSWERThe amount of obligations owed to creditors
Equity - ANSWERCummulative shareholder investment plus cumulative net income
Non-Cash Current Assets - ANSWERRepresent all assets besides cash that are
expected to be converted into cash within one year. These assets appear on the
company's balance sheet and include accounts receivable, inventory, prepaid
expenses, and other assets
Non-Debt Current Liabilities - ANSWERRepresent all obligations besides short-term
debt that are due within one year. Current liabilities appear on the company's
balance sheet and include accounts payable, accrued liabilities, and other obligations
Net Debt - ANSWERIf we took all of our cash and paid down debt, what debt would
be left
Cash from Operating Activities - ANSWERThe amount of cash generated by an
organization's normal business operations. The most common line items included in
