Adventis Questions And Answers Rated A+.
The Income Statement
A) Presents the results of operations over a period of time
B) Discloses the resources an organization controls and the claims against those resources
C) Shows an organization's financial position at a point in time
D) Shows...
The Income Statement
A) Presents the results of operations over a period of time
B) Discloses the resources an organization controls and the claims against those
resources
C) Shows an organization's financial position at a point in time
D) Shows the inflows and outflows over a period of time - correct answer. A
Which of the following is not accurate in regards to the balance sheet
A) Shows an organization's financial position at a point in time
B) Discloses the resources an organization controls and the claims against those
resources
C) Includes items such as cash, accounts receivable, and equity
D) Presents the results of operations over a period of time - correct answer. D
What is the direct cost of producing revenue?
A) Operating expenses
B) Non-operating expenses
C) Cost of sales
D) Other expenses - correct answer. C
What is an example of cost of sales
A) Travel costs
B) Raw material cos used in the production process
C) Interest expense
D) Management salaries - correct answer. B
Which of the following does not fall into financing activities?
A) Share repurchases
B) Debt issuances
C) Dividends
D) Acquisitions - correct answer. D
, Which of the following does not fall into operating activities
A) Depreciation
B) Net income
C) Change in working capital
D) Capital expenditures - correct answer. D
Which of the following falls into investing activities?
A) Cost of goods sold
B) Depreciation
C) Capital Expenditures
D) Change in working capital - correct answer. C
Which of the following balance sheet items are included in working capital?
A) Debt
B) Accounts receivable
C) Equity
D) Cash
E) Long-term liabilities - correct answer. B
Which of the following balance sheet items are not included in working capital?
A) Accounts payable
B) Accrued liabilities
C) Accounts receivable
D) Short-term debt
E) Other current liabilities - correct answer. D
The income statement connects to the cash flow statement via which account?
A) Equity
B) Corporate taxes
C) Operating profit
D) Net income - correct answer. D
How is EBITDA typically calculated?
A) Operating income plus depreciation and amortization
B) Net income less taxes
C) Gross profit plus depreciation and amortization
D) Cash flow from operations plus depreciation and amortization
E) Cash flow from operations less capital expenditures - correct answer. A
What is a standard approach to calculating free cash flow?
A) Net income plus depreciation plus charge in working capital
B) EBIT plus depreciation and amortization
C) Cash flow from operations plus depreciation and amortization
D) Cash flow from operations less capital expenditures - correct answer. D
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