Adventis Financial Modeling Course
Exam 2026 Questions and Answers
Cash on Cash Multiple - Correct answer-How much an investor receives in
proceeds upon exiting the investment compared to its initial investment; it is not
dependent on when the exit actually occurs
Income Statement - Correct answer-Presents the results from operations
(profitability) over a period of time. Purpose is to show stakeholders whether the
company made or lost money during the period being reported. Represents how
revenues are transformed into Net Income.
Revenue - Correct answer-The amount charged for the delivery of a good or
service.
Cost of Goods Sold (COGS) - Correct answer-Direct cost of producing revenue
(raw materials, etc).
Gross Profit - Correct answer-Revenue less cost of sales. Indicated how effeciently
labor and supplies are used in production.
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, Operating Expenses - Correct answer-All other expenses required to run the
business
Non-Operating Expenses - Correct answer-Expenses or income not related to the
regular business of the company.
Corporate Taxes - Correct answer-Local and federal taxes the company incurs.
Net Income (Net Earnings) - Correct answer-Revenue less all expenses of the
company; indicated the increase in shareholders value resulting from operations.
Balance Sheet - Correct answer-Shows and organizatios financial position at a
particular point in time. It discloses the resources an organization controls (assets)
and claims on those reasources (liabilities and equity).
Accounts Receivable - Correct answer-The amount owed to an organization from
the sale of its product or services.
Fixed Assets - Correct answer-Value of assets and property that cannot easily be
converted into cash.
Accounts Payable - Correct answer-Amount owed to an organization's vendors.
Debt - Correct answer-Amount of obligations owed to creditors.
Equity - Correct answer-Cumulative shareholder investment plus cumulative net
income.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Exam 2026 Questions and Answers
Cash on Cash Multiple - Correct answer-How much an investor receives in
proceeds upon exiting the investment compared to its initial investment; it is not
dependent on when the exit actually occurs
Income Statement - Correct answer-Presents the results from operations
(profitability) over a period of time. Purpose is to show stakeholders whether the
company made or lost money during the period being reported. Represents how
revenues are transformed into Net Income.
Revenue - Correct answer-The amount charged for the delivery of a good or
service.
Cost of Goods Sold (COGS) - Correct answer-Direct cost of producing revenue
(raw materials, etc).
Gross Profit - Correct answer-Revenue less cost of sales. Indicated how effeciently
labor and supplies are used in production.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Operating Expenses - Correct answer-All other expenses required to run the
business
Non-Operating Expenses - Correct answer-Expenses or income not related to the
regular business of the company.
Corporate Taxes - Correct answer-Local and federal taxes the company incurs.
Net Income (Net Earnings) - Correct answer-Revenue less all expenses of the
company; indicated the increase in shareholders value resulting from operations.
Balance Sheet - Correct answer-Shows and organizatios financial position at a
particular point in time. It discloses the resources an organization controls (assets)
and claims on those reasources (liabilities and equity).
Accounts Receivable - Correct answer-The amount owed to an organization from
the sale of its product or services.
Fixed Assets - Correct answer-Value of assets and property that cannot easily be
converted into cash.
Accounts Payable - Correct answer-Amount owed to an organization's vendors.
Debt - Correct answer-Amount of obligations owed to creditors.
Equity - Correct answer-Cumulative shareholder investment plus cumulative net
income.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
