Multiple Choice section of Adventis Certification level 1 Exam Questions &
Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest update!!
income statement, balance sheet, cf statement
What are the three financial they communicate the finanical conditions, results of operations,
statements, and what do they and other activties of an organization. The three finanical
do statements provide info to various
stakeholders.
How does the board of to hold mgmt acountable, make board-level decisions about corporate
directors use finanical strategy
statements?
company mgmt-- how do they to measure performance and make strategic, operating and financial
use fina statements? decisions
Creditors- how do they use fina to measure credit worthiness, liqudity, and bankruptcy risk
statements
investors-- how do they use to make decisions on buying or selling equity investments
fina statements?
acquirers-- how do they use to determine valuation and make investment decisions
fina statements?
they use fina statements to determine whether the company is
regulators
operating according to regulations and the law
the income statement presents the results of operations
The income statement (profitability) over a period of time.
does what what is its The purpose of the income statement is to show stakeholders
purpose whether the company made or lost money during the period
reported.
, THE INCOME STATEMENT the amount charged for the delivery of goods or services.
Revenue(sales) is _.
cogs is the direct cost of producing revenue. (RM, wages, etc.)
revenue- cogs
Gross profit is ___.
it indicates how efficiently lbaor and supplies are used in the production
process.
operating expenses are all other expenses required to run the business (marketing, travel, mgmt
salaries)
EBIT
Operating income, aka ___, is _. revenue- cogs-operating expenses
it indicates a companies earning power from ongoing operations
expenses not related to the regular business of the company.
Non-operating expenses are
(interest expense, restructuring expense, etc.)
revenue- all exepsens of the company
Net income//net
earnings are Net
increase in shareholder value resulting from operations
earnings indicates
the
the balance sheet shows an organization's finanical position at a
THE BALANCE SHEET PARTICULAR POINT IN TIME!
it shows______ at a particular _. it shows the resources an organization controls (assets), and
the basic set up is _. the claims on those resources (liability and equity).
it must balance lol the balance sheet measures the performance of a company
regardless of when cash transactions occur.
Accounts recievable is the amount owed to an organization from the sale of its products or
services.
the value of assets and property that cannot easily be converted
Fixed assets are
to cash and has a useful life of greater than 1 year. Ex. Plants,
property, equipment
debt is the amount of obligations owed to creditors
Debt is
Equity is
equity is cumulative shareholder investment plus cumulative net income.
___
Working capital is not on the efficiency & short-term financial health.
balance non-cash current assets - non-debt current liabilties
sheet, but it can be derived from
balance sheet accounts.
Working capital is a measure of a
firm's ___________________ _.
Its calculated as _.
Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest update!!
income statement, balance sheet, cf statement
What are the three financial they communicate the finanical conditions, results of operations,
statements, and what do they and other activties of an organization. The three finanical
do statements provide info to various
stakeholders.
How does the board of to hold mgmt acountable, make board-level decisions about corporate
directors use finanical strategy
statements?
company mgmt-- how do they to measure performance and make strategic, operating and financial
use fina statements? decisions
Creditors- how do they use fina to measure credit worthiness, liqudity, and bankruptcy risk
statements
investors-- how do they use to make decisions on buying or selling equity investments
fina statements?
acquirers-- how do they use to determine valuation and make investment decisions
fina statements?
they use fina statements to determine whether the company is
regulators
operating according to regulations and the law
the income statement presents the results of operations
The income statement (profitability) over a period of time.
does what what is its The purpose of the income statement is to show stakeholders
purpose whether the company made or lost money during the period
reported.
, THE INCOME STATEMENT the amount charged for the delivery of goods or services.
Revenue(sales) is _.
cogs is the direct cost of producing revenue. (RM, wages, etc.)
revenue- cogs
Gross profit is ___.
it indicates how efficiently lbaor and supplies are used in the production
process.
operating expenses are all other expenses required to run the business (marketing, travel, mgmt
salaries)
EBIT
Operating income, aka ___, is _. revenue- cogs-operating expenses
it indicates a companies earning power from ongoing operations
expenses not related to the regular business of the company.
Non-operating expenses are
(interest expense, restructuring expense, etc.)
revenue- all exepsens of the company
Net income//net
earnings are Net
increase in shareholder value resulting from operations
earnings indicates
the
the balance sheet shows an organization's finanical position at a
THE BALANCE SHEET PARTICULAR POINT IN TIME!
it shows______ at a particular _. it shows the resources an organization controls (assets), and
the basic set up is _. the claims on those resources (liability and equity).
it must balance lol the balance sheet measures the performance of a company
regardless of when cash transactions occur.
Accounts recievable is the amount owed to an organization from the sale of its products or
services.
the value of assets and property that cannot easily be converted
Fixed assets are
to cash and has a useful life of greater than 1 year. Ex. Plants,
property, equipment
debt is the amount of obligations owed to creditors
Debt is
Equity is
equity is cumulative shareholder investment plus cumulative net income.
___
Working capital is not on the efficiency & short-term financial health.
balance non-cash current assets - non-debt current liabilties
sheet, but it can be derived from
balance sheet accounts.
Working capital is a measure of a
firm's ___________________ _.
Its calculated as _.
