Financial Accounting > QUESTIONS & ANSWERS > ADVENTIS FMC LEVEL 1 QUESTION WITH CORRECT ANSWERS (All)

ADVENTIS FMC LEVEL 1 QUESTION WITH CORRECT ANSWERS

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financial statement communicates what? Correct Answer - financial condition - results of operations - various other activities of an organization how board of directors use financial data... Cor... rect 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 [Show More]

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