Adventis FMC Level 1 MC Practice UPDATED Actual Exam Questions and CORRECT Answers
3 views 0 purchase
Course
Adventis FMC
Institution
Adventis FMC
Adventis FMC Level 1 MC Practice
UPDATED Actual Exam Questions and
CORRECT Answers
what is the purpose of the income statement?
What does it indicate? - CORRECT ANSWER- to show stakeholders if the firm made or
lost money during the period being reported
it indicates how revenues are trans...
Adventis FMC Level 1 MC Practice
UPDATED Actual Exam Questions and
CORRECT Answers
what is the purpose of the income statement?
What does it indicate? - CORRECT ANSWER✔✔- to show stakeholders if the firm made or
lost money during the period being reported
it indicates how revenues are transformed into net income
define:
Revenue - CORRECT ANSWER✔✔- the amount charged for the delivery of goods and
services
define:
COGS - CORRECT ANSWER✔✔- direct costs of producing revenue
define:
Operating Expense - CORRECT ANSWER✔✔- all other expenses required to run the
business
what does Operating Income indicate?
-what is the other word for it? - CORRECT ANSWER✔✔- Op income indicates a company's
earnings power from ongoing operations
Another work for Operating profit is EBIT
what does net profit indicate for the shareholder? - CORRECT ANSWER✔✔- indicates the
increase in shareholder value resulting from the operations of the firm
, list the general flow of the income statement - CORRECT ANSWER✔✔- revenue
(COGS)
Gross Profit
(Operating expense)
Operating Income
(non Op Expense)
(Tax)
Net Income
what does the balance sheet show - CORRECT ANSWER✔✔- it is a financial statement that
represents the financial position of the company on a particular date
Balance sheet:
Assets are what the company _____, Liabilities are what the company _____, and equity is
the ------ ------- of shareholders against the company - CORRECT ANSWER✔✔- Assets are
what the company owns, Liabilities are what the company owes, and equity is the Remaining
Claims of shareholders against the company
Define:
Debt
which statement is it found on? - CORRECT ANSWER✔✔- the amount of obligations owed
to creditors
It is found on the balance sheet
Define:
Equity
which statement is it found on? - CORRECT ANSWER✔✔- Equity is the cumulative
shareholder investments + cumulative net earnings
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
