Adventis FMC Level 1 Questions And Answers 100% Verified.
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Adventis FMC Level 1
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Adventis FMC Level 1
Adventis FMC Level 1 Questions And Answers 100% Verified.
financial statement communicates what? - correct answer. - financial condition
- results of operations
- various other activities of an organization
how board of directors use financial data... - correct answer. - hold...
Adventis FMC Level 1 Questions And
Answers 100% Verified.
financial statement communicates what? - correct answer. - financial condition
- results of operations
- various other activities of an organization
how board of directors use financial data... - correct answer. - hold management
accountable - make board-level decisions about corporate strategy
how company management uses financial data... - correct answer. - measure
performance
- make strategic, operating and financial decisions
how creditors use financial data... - correct answer. - measure creditworthiness
- liquidity
- bankruptcy risk
how investors use financial data... - correct answer. make decisions on buying/selling
equity investments
how acquirers use financial data... - correct answer. - determine valuation
- make investment decisions
how regulators use financial data... - correct answer. determine whether company is
operating according to regulations/law
what does the income statement present? - correct answer. results of operations over
a period of time
what is the purpose of the income statement? - correct answer. to show whether the
company made or lost money during the period reported
what does the income statement indicate? - correct answer. how revenues are
translated into net income through subtracting expenses
, revenue (sales) - correct answer. amount charged for the delivery of goods or
services
cost of sales (cogs) - correct answer. - direct cost of producing revenue
- Ex: raw materials, direct wages, etc.
gross profit - correct answer. - revenue - cogs
- indicates how efficiently labor and materials are used in the production process
operating expenses - correct answer. - all other expenses required to run a business
- Ex: management salaries, marketing, travel, etc.
operating income (EBIT) - correct answer. - revenue - cogs - operating expenses
- indicates a company's earning power from ongoing operations
non-operating expenses - correct answer. - expenses not related to regular business
of the company
- Ex: interest expense, restructuring expense, etc.
corporate taxes - correct answer. local and federal income taxes the company incurs
net income (net earnings) - correct answer. - revenue - cogs - operating expenses -
non-operating expenses - taxes
- indicates increase in shareholders' value resulting from operations
what does the balance sheet show? - correct answer. an organization's financial
position at a particular point in time
what does the balance sheet disclose? - correct answer. - the resources an
organization controls (assets)
- the claims on those resources (liabilities and equity)
what is the basic accounting equation? - correct answer. assets = liabilities + equity
what is the basic accounting equation a foundation for? - correct answer. the double
entry bookkeeping system
what is the double entry bookkeeping system? - correct answer. there is a credit for
every debit
what does the accrual accounting method measure? - correct answer. the
performance of a company regardless of when cash transaction occur
cash - correct answer. current assets comprising currency or currency equivalents
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