{"id":131293,"date":"2024-01-11T08:08:40","date_gmt":"2024-01-11T08:08:40","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=131293"},"modified":"2024-01-11T08:08:42","modified_gmt":"2024-01-11T08:08:42","slug":"adventis-financial-modeling-certification-fmc-level-1-exam-review-latest-2023-2024-update-questions-and-verified-answers-100-correct","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2024\/01\/11\/adventis-financial-modeling-certification-fmc-level-1-exam-review-latest-2023-2024-update-questions-and-verified-answers-100-correct\/","title":{"rendered":"Adventis Financial Modeling Certification (FMC) Level 1 Exam Review (Latest 2023\/ 2024 Update) Questions and Verified Answers| 100% Correct"},"content":{"rendered":"\n<p>Adventis Financial Modeling Certification (FMC) Level 1 Exam Review (Latest 2023\/ 2024 Update) Questions and Verified Answers| 100% Correct<\/p>\n\n\n\n<p>Adventis Financial Modeling Certification<br>(FMC) Level 1 Exam Review (Latest 2023\/<br>2024 Update) Questions and Verified<br>Answers| 100% Correct<br>Q: revenue (sales)<br>Answer:<br>amount charged for the delivery of goods or services<br>Q: cost of sales (cogs)<br>Answer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>direct cost of producing revenue<\/li>\n\n\n\n<li>Ex: raw materials, direct wages, etc.<br>Q: gross profit<br>Answer:<\/li>\n\n\n\n<li>revenue &#8211; cogs<\/li>\n\n\n\n<li>indicates how efficiently labor and materials are used in the production process<br>Q: operating expenses<br>Answer:<\/li>\n\n\n\n<li>all other expenses required to run a business<\/li>\n\n\n\n<li>Ex: management salaries, marketing, travel, etc.<\/li>\n<\/ul>\n\n\n\n<p>Q: operating income (EBIT)<br>Answer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>revenue &#8211; cogs &#8211; operating expenses<\/li>\n\n\n\n<li>indicates a company&#8217;s earning power from ongoing operations<br>Q: non-operating expenses<br>Answer:<\/li>\n\n\n\n<li>expenses not related to regular business of the company<\/li>\n\n\n\n<li>Ex: interest expense, restructuring expense, etc.<br>Q: corporate taxes<br>Answer:<br>local and federal income taxes the company incurs<br>Q: net income (net earnings)<br>Answer:<\/li>\n\n\n\n<li>revenue &#8211; cogs &#8211; operating expenses &#8211; non-operating expenses &#8211; taxes<\/li>\n\n\n\n<li>indicates increase in shareholders&#8217; value resulting from operations<br>Q: what does the balance sheet show?<br>Answer:<br>an organization&#8217;s financial position at a particular point in time<br>Q: what does the balance sheet disclose?<\/li>\n<\/ul>\n\n\n\n<p>Answer:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the resources an organization controls (assets)<\/li>\n\n\n\n<li>the claims on those resources (liabilities and equity)<br>Q: what is the basic accounting equation?<br>Answer:<br>assets = liabilities + equity<br>Q: what is the basic accounting equation a foundation for?<br>Answer:<br>the double entry bookkeeping system<br>Q: what is the double entry bookkeeping system?<br>Answer:<br>there is a credit for every debit<br>Q: what does the accrual accounting method measure?<br>Answer:<br>the performance of a company regardless of when cash transaction occur<br>Q: cash<br>Answer:<br>current assets comprising currency or currency equivalents that can be accessed immediately<br>get pdf at <a href=\"https:\/\/learnexams.com\/search\/study?query=\" target=\"_blank\" rel=\"noopener\">learnexams<\/a><\/li>\n\n\n\n<li><\/li>\n<\/ul>\n\n\n\n<p>financial statement communicates what?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>financial condition<\/li>\n\n\n\n<li>results of operations<\/li>\n\n\n\n<li>various other activities of an organization<\/li>\n<\/ul>\n\n\n\n<p>how board of directors use financial data\u2026<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>hold management accountable &#8211; make board-level decisions about corporate strategy<\/li>\n<\/ul>\n\n\n\n<p>how company management uses financial data\u2026<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>measure performance<\/li>\n\n\n\n<li>make strategic, operating and financial decisions<\/li>\n<\/ul>\n\n\n\n<p>how creditors use financial data\u2026<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>measure creditworthiness<\/li>\n\n\n\n<li>liquidity<\/li>\n\n\n\n<li>bankruptcy risk<\/li>\n<\/ul>\n\n\n\n<p>how investors use financial data\u2026<br>make decisions on buying\/selling equity investments<\/p>\n\n\n\n<p>how acquirers use financial data\u2026<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>determine valuation<\/li>\n\n\n\n<li>make investment decisions<\/li>\n<\/ul>\n\n\n\n<p>how regulators use financial data\u2026<br>determine whether company is operating according to regulations\/law<\/p>\n\n\n\n<p>what does the income statement present?<br>results of operations over a period of time<\/p>\n\n\n\n<p>what is the purpose of the income statement?<br>to show whether the company made or lost money during the period reported<\/p>\n\n\n\n<p>what does the income statement indicate?<br>how revenues are translated into net income through subtracting expenses<\/p>\n\n\n\n<p>revenue (sales)<br>amount charged for the delivery of goods or services<\/p>\n\n\n\n<p>cost of sales (cogs)<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>direct cost of producing revenue<\/li>\n\n\n\n<li>Ex: raw materials, direct wages, etc.<\/li>\n<\/ul>\n\n\n\n<p>gross profit<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>revenue &#8211; cogs<\/li>\n\n\n\n<li>indicates how efficiently labor and materials are used in the production process<\/li>\n<\/ul>\n\n\n\n<p>operating expenses<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>all other expenses required to run a business<\/li>\n\n\n\n<li>Ex: management salaries, marketing, travel, etc.<\/li>\n<\/ul>\n\n\n\n<p>operating income (EBIT)<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>revenue &#8211; cogs &#8211; operating expenses<\/li>\n\n\n\n<li>indicates a company&#8217;s earning power from ongoing operations<\/li>\n<\/ul>\n\n\n\n<p>non-operating expenses<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>expenses not related to regular business of the company<\/li>\n\n\n\n<li>Ex: interest expense, restructuring expense, etc.<\/li>\n<\/ul>\n\n\n\n<p>corporate taxes<br>local and federal income taxes the company incurs<\/p>\n\n\n\n<p>net income (net earnings)<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>revenue &#8211; cogs &#8211; operating expenses &#8211; non-operating expenses &#8211; taxes<\/li>\n\n\n\n<li>indicates increase in shareholders&#8217; value resulting from operations<\/li>\n<\/ul>\n\n\n\n<p>what does the balance sheet show?<br>an organization&#8217;s financial position at a particular point in time<\/p>\n\n\n\n<p>what does the balance sheet disclose?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the resources an organization controls (assets)<\/li>\n\n\n\n<li>the claims on those resources (liabilities and equity)<\/li>\n<\/ul>\n\n\n\n<p>what is the basic accounting equation?<br>assets = liabilities + equity<\/p>\n\n\n\n<p>what is the basic accounting equation a foundation for?<br>the double entry bookkeeping system<\/p>\n\n\n\n<p>what is the double entry bookkeeping system?<br>there is a credit for every debit<\/p>\n\n\n\n<p>what does the accrual accounting method measure?<br>the performance of a company regardless of when cash transaction occur<\/p>\n\n\n\n<p>cash<br>current assets comprising currency or currency equivalents that can be accessed immediately<\/p>\n\n\n\n<p>accounts receivable<br>amount owed to an organization from the sale of a good or service<\/p>\n\n\n\n<p>fixed assets<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>value of assets and property that can&#8217;t be easily converted to cash<\/li>\n\n\n\n<li>has a useful life of greater than 1 year<\/li>\n\n\n\n<li>Ex: PPE<\/li>\n<\/ul>\n\n\n\n<p>accounts payable<br>amount owed to an organization&#8217;s vendors<\/p>\n\n\n\n<p>debt<br>amount of obligations owed to creditors<\/p>\n\n\n\n<p>equity<br>cumulative shareholder investment + cumulative net income<\/p>\n\n\n\n<p>what is working capital a measure of?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a company&#8217;s efficiency<\/li>\n\n\n\n<li>short term financial health<\/li>\n<\/ul>\n\n\n\n<p>working capital equation<br>non-cash current assets &#8211; non-debt current liabilities<\/p>\n\n\n\n<p>what does a positive or negative working capital indicate?<br>whether it&#8217;s a source or use of cash<\/p>\n\n\n\n<p>what can happen if a company&#8217;s non-cash current assets &lt; non-debt current liabilities?<br>may run into challenges repaying creditors and suppliers in the short run<\/p>\n\n\n\n<p>non-cash current assets<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>non-cash assets expected to be turned into cash within one year<\/li>\n\n\n\n<li>Ex: accounts receivable, inventory, prepaid expenses, other assets<\/li>\n<\/ul>\n\n\n\n<p>non-debt current liabilities<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>all obligations besides short-term debt that are due within one year<\/li>\n\n\n\n<li>Ex: accounts payable, accrued liabilities, other obligations<\/li>\n<\/ul>\n\n\n\n<p>what is a less expensive form of capital?<br>debt because it&#8217;s less risky<\/p>\n\n\n\n<p>what types of claims to debt owners have?<br>priority claims on company&#8217;s assets if company goes bankrupt<\/p>\n\n\n\n<p>what is a more expensive form of capital?<br>equity because equity holders aren&#8217;t guaranteed to get their investment back if the company goes bankrupt<\/p>\n\n\n\n<p>what requires a higher rate of return, debt or equity?<br>equity<\/p>\n\n\n\n<p>net debt<br>total debt &#8211; cash<\/p>\n\n\n\n<p>what is net debt primarily used in?<br>credit analysis because creditors assume that the company&#8217;s cash balance could be applied to debt repayment in the event of a liquidity crunch or bankruptcy<\/p>\n\n\n\n<p>what does the cash flow statement show?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>how much cash is generated or lost during a period of time<\/li>\n\n\n\n<li>how changes in the balance sheet and net income affect cash<\/li>\n<\/ul>\n\n\n\n<p>what does the cash flow statement reconcile?<br>net income to change in cash<\/p>\n\n\n\n<p>what is the cash flow statement useful for in determining<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a company&#8217;s viability; it&#8217;s ability to pay bills<\/li>\n\n\n\n<li>liquidity<\/li>\n<\/ul>\n\n\n\n<p>cash from operating activities<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash generated by a company&#8217;s normal business operations<\/li>\n\n\n\n<li>Ex: net earnings, depreciation and amortization, change in working capital<\/li>\n<\/ul>\n\n\n\n<p>cash from investing activities<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>acquisition and disposal of long-term investments (PPE and M&amp;A)<\/li>\n\n\n\n<li>Ex: capital expenditures, acquisitions<\/li>\n<\/ul>\n\n\n\n<p>cash from financing activities<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash flow between organization and its owners and creditors<\/li>\n\n\n\n<li>Ex: debt\/equity issuances (change in debt), dividends, share repurchases<\/li>\n<\/ul>\n\n\n\n<p>beginning cash balance<br>ending cash balance for previous period of time<\/p>\n\n\n\n<p>change in cash<br>sum of cash from operating, investing, and financing activities<\/p>\n\n\n\n<p>ending cash balance<br>sum of beginning cash balance and change in cash<\/p>\n\n\n\n<p>depreciation and amortization<br>method of allocating the cost of an asset over its useful life for both accounting and tax purposes<\/p>\n\n\n\n<p>how is depreciation and amortization shown on the income statement?<br>as an expense<\/p>\n\n\n\n<p>why doesn&#8217;t depreciation and amortization represent a decrease in cash?<br>it doesn&#8217;t represent a decrease in cash because cash only leaves the company during the initial purchase of the asset (CapEx)<\/p>\n\n\n\n<p>what does depreciation and amortization represent in terms of cash on the cash flow statement?<br>a source of cash<\/p>\n\n\n\n<p>capital expenditures (CapEx)<br>funds used by a company to purchase\/upgrade physical assets (PPE)<\/p>\n\n\n\n<p>what does CapEx represent in terms of cash on the cash flow statement?<br>a use of cash<\/p>\n\n\n\n<p>what does a decrease in working capital represent?<br>a source of cash<\/p>\n\n\n\n<p>what does an increase in working capital represent?<br>a use of cash<\/p>\n\n\n\n<p>share repurchase<br>re-acquisition of an organization&#8217;s own stock<\/p>\n\n\n\n<p>2 paths for share repurchases<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>organization retires the stock<\/li>\n\n\n\n<li>keep them as treasury stock<\/li>\n<\/ol>\n\n\n\n<p>what happens to the ownership percentage and portion of earnings for shareholders when shares are repurchased?<br>they increase<\/p>\n\n\n\n<p>what are share repurchases a form of?<br>returning capital to shareholders irregularly as opposed to a regular dividend program<\/p>\n\n\n\n<p>dividends<br>distribution of cash<\/p>\n\n\n\n<p>how are dividends most often derived?<br>from a dividend per share amount as directed by the board of directors<\/p>\n\n\n\n<p>what is the difference between share repurchases and dividends?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>dividends don&#8217;t affect ownership percentages<\/li>\n\n\n\n<li>represent a pure check to shareholders<\/li>\n<\/ul>\n\n\n\n<p>what are sticky dividends?<br>companies choose to have a dividend program where dividends are constantly distributed to shareholders<\/p>\n\n\n\n<p>how can removing a sticky dividend program affect the company?<br>it can show signs of trouble for the company<\/p>\n\n\n\n<p>change in debt<br>represents any debt issuances or repayments<\/p>\n\n\n\n<p>EBITDA<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>gives an indication of a company&#8217;s current operational profitability<\/li>\n\n\n\n<li>one of most commonly used metrics<\/li>\n<\/ul>\n\n\n\n<p>why is EBITDA widely used when assessing the performance of a company?<br>it allows for comparison of profitability between companies in a wide range of industries<\/p>\n\n\n\n<p>what does EBITDA exclude?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>affects from different forms of financing<\/li>\n\n\n\n<li>different political and tax jurisdictions<\/li>\n\n\n\n<li>different rules surrounding depreciation and amortization<\/li>\n<\/ul>\n\n\n\n<p>free cash flow<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>see what cash is available for distribution to creditors and shareholders<\/li>\n\n\n\n<li>ONE OF MORE IMPORTANT METRICS TO USE FOR VALUATION<\/li>\n<\/ul>\n\n\n\n<p>free cash flow equation<br>cash flow from operations &#8211; CapEx<\/p>\n\n\n\n<p>financial ratios<br>useful indicators of a firm&#8217;s performance and financial situation<\/p>\n\n\n\n<p>what is the starting point for financial ratios?<br>past ratios in order to forecast into the future<\/p>\n\n\n\n<p>how can financial ratios be expressed?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>decimal<\/li>\n\n\n\n<li>percentage<\/li>\n\n\n\n<li>multiple (x)<\/li>\n<\/ul>\n\n\n\n<p>liquidity ratios<br>indicate a company&#8217;s ability to meet its short-term financial obligations<\/p>\n\n\n\n<p>who cares about liquidity ratios?<br>those extending short-term credit such as banks<\/p>\n\n\n\n<p>2 liquidity ratios<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>current ratio<\/li>\n\n\n\n<li>cash ratio<\/li>\n<\/ol>\n\n\n\n<p>current ratio<br>indicates whether a company&#8217;s short-term assets are readily available to pay off short-term liabilities<\/p>\n\n\n\n<p>current ratio formula<br>current assets \/ current liabilities<\/p>\n\n\n\n<p>normal current ratio<br>between 1.50-3.00<\/p>\n\n\n\n<p>cash ratio<br>indicates a company&#8217;s ability to use cash to pay of its current liabilities<\/p>\n\n\n\n<p>cash ratio formula<br>cash \/ current liabilities<\/p>\n\n\n\n<p>normal cash ratio<br>between 0.20-1.00<\/p>\n\n\n\n<p>efficiency ratios<br>indicate how effectively a company utilizes its assets<\/p>\n\n\n\n<p>2 efficiency ratios<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>days receivable<\/li>\n\n\n\n<li>asset turnover<\/li>\n<\/ol>\n\n\n\n<p>days receivable ratio<br>average number of days an invoice is in accounts receivable before collection<\/p>\n\n\n\n<p>days receivable ratio formula<br>accounts receivable \/ revenue X 365<\/p>\n\n\n\n<p>days receivable ratio of 60 means\u2026<br>company&#8217;s invoices on average are paid down in 60 days<\/p>\n\n\n\n<p>asset turnover ratio<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>amount of revenues generated per dollar of assets<\/li>\n\n\n\n<li>measures company&#8217;s efficiency in turning assets into revenue<\/li>\n<\/ul>\n\n\n\n<p>asset turnover ratio formula<br>revenue \/ assets<\/p>\n\n\n\n<p>asset turnover ratio of 2.5 means\u2026<br>for every dollar of assets, a company earns $2.5 of revenue<\/p>\n\n\n\n<p>profitability ratios<br>profits made by company relative to its assets, equity, or revenue (metrics)<\/p>\n\n\n\n<p>what do profitability ratio metrics tell us?<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>outperformance vs peers<\/li>\n\n\n\n<li>opportunities for improvement<\/li>\n<\/ol>\n\n\n\n<p>gross margin ratio<br>relative to revenue, indicates how efficiently labor and supplies are used in production process<\/p>\n\n\n\n<p>gross margin ratio formula<br>gross profit \/ revenue<\/p>\n\n\n\n<p>what does a gross margin ratio of 35% mean\u2026<br>for every one dollar of revenue, $0.35 is converted into gross profit<\/p>\n\n\n\n<p>operating margin ratio<br>relative to revenue, indicates a company&#8217;s earning power from ongoing operations<\/p>\n\n\n\n<p>operating margin ratio formula<br>operating income \/ revenue<\/p>\n\n\n\n<p>operating margin ratio of 15% means\u2026<br>for every $1 of revenue, $0.15 is converted to operating profit<\/p>\n\n\n\n<p>net margin ratio<br>relative to revenue, indicates the increase in shareholders&#8217; equity from earnings<\/p>\n\n\n\n<p>net margin ratio formula<br>net income \/ revenue<\/p>\n\n\n\n<p>net margin ratio of 10% means\u2026<br>for every $1 of revenue, $0.10 us converted to net income<\/p>\n\n\n\n<p>return on equity ratio<br>measures profits earned for each dollar invested in a company&#8217;s equity<\/p>\n\n\n\n<p>return on equity ratio formula<br>net income \/ shareholders equity<\/p>\n\n\n\n<p>a return on equity ratio of 17% means\u2026<br>for every $1 invested, $0.17 of net income is produced<\/p>\n\n\n\n<p>credit ratios<br>measure a company&#8217;s ability to meet its long term obligations<\/p>\n\n\n\n<p>debt\/EBITDA ratio<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>total leverage<\/li>\n\n\n\n<li>probability of defaulting on debt<\/li>\n<\/ul>\n\n\n\n<p>debt\/EBITDA and net debt\/EBITDA ratios of 2.5x means\u2026<br>it will take 2.5 years to pay off debt<\/p>\n\n\n\n<p>net debt\/EBITDA ratio<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>net leverage<\/li>\n\n\n\n<li>probability of defaulting on debt but taking into account cash balance to be used to pay off debt<\/li>\n<\/ul>\n\n\n\n<p>debt\/equity ratio<br>proportion of debt and equity used to finance a company&#8217;s assets<\/p>\n\n\n\n<p>debt\/equity ratio of 25% means\u2026<br>for every $1 owned by shareholders, $0.25 is owed to creditors<\/p>\n\n\n\n<p>EBITDA interest coverage ratio<br>how easily a company can pay interest on outstanding debt<\/p>\n\n\n\n<p>EBITDA coverage ratio of 2.0x means\u2026<br>company is producing 2 times the cash flow needed to pay off interest expenses<\/p>\n\n\n\n<p>market ratios<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>measure investor response to owning a company&#8217;s stock<\/li>\n\n\n\n<li>help to understand how investors value a company<\/li>\n<\/ul>\n\n\n\n<p>what are market ratios an indicator of?<br>company&#8217;s ability to generate profits and build assets<\/p>\n\n\n\n<p>enterprise value<br>sum of all claims on a company (overall value) independent of capital structure<\/p>\n\n\n\n<p>equity value (market value\/market cap)<br>value of all the shares outstanding (current value attributable to shareholders)<\/p>\n\n\n\n<p>price\/earnings ratio<br>how much investors are willing to pay per dollar of earnings (affected by leverage)<\/p>\n\n\n\n<p>p\/e ratio of 15x means\u2026<br>investors are willing to pay $15 for every $1 of net income<\/p>\n\n\n\n<p>earnings per share<br>amount of earnings attributable to a share of common stock<\/p>\n\n\n\n<p>eps of $2.45 means\u2026<br>$2.45 was earned for every share of stock<\/p>\n\n\n\n<p>dividend yield<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>dividend per share\/ share price<\/li>\n\n\n\n<li>return on a share of stock<\/li>\n<\/ul>\n\n\n\n<p>EV\/EBITDA<br>measures value of common stock that allows comparison of companies in different industries<\/p>\n\n\n\n<p>EV\/EBITDA of 4.5x means\u2026<br>for every $1 of EBITDA, the company is worth $4.50<\/p>\n\n\n\n<p>EV\/revenue<br>compares total value of a company to its revenue<\/p>\n\n\n\n<p>EV\/revenue of 1.5x means\u2026<br>for every $1 of revenue, the company is worth $1.50<\/p>\n\n\n\n<p>what does financial modeling refer to?<br>financial statement forecasting<\/p>\n\n\n\n<p>a financial model is a representation of what?<br>an organization&#8217;s financial path forward and relies on historical data<\/p>\n\n\n\n<p>2 objectives of financial modeling<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>arm decision makers with reliable info<\/li>\n\n\n\n<li>communicate effectively to stakeholders<\/li>\n<\/ol>\n\n\n\n<p>in financial models what drives calculations and outputs?<br>inputs<\/p>\n\n\n\n<p>impact of positive net income on financial statments<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>equity increases<\/li>\n\n\n\n<li>cash increases<\/li>\n<\/ul>\n\n\n\n<p>impact of pay down of debt on financial statements<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash decreases<\/li>\n\n\n\n<li>debt decreases<\/li>\n<\/ul>\n\n\n\n<p>impact of submitting an invoice to a customer on financial statements<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>accounts receivable increases<\/li>\n\n\n\n<li>revenue increases<\/li>\n<\/ul>\n\n\n\n<p>impact of receiving an invoice payment on financial statements<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash increases<\/li>\n\n\n\n<li>accounts receivable decreases<\/li>\n<\/ul>\n\n\n\n<p>impact of paying a bill on financial statements<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash decreases<\/li>\n\n\n\n<li>accounts payable decreases<\/li>\n<\/ul>\n\n\n\n<p>impact of purchasing equipment on financial statments<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash decreases<\/li>\n\n\n\n<li>fixed assets increases<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Adventis Financial Modeling Certification (FMC) Level 1 Exam Review (Latest 2023\/ 2024 Update) Questions and Verified Answers| 100% Correct Adventis Financial Modeling Certification(FMC) Level 1 Exam Review (Latest 2023\/2024 Update) Questions and VerifiedAnswers| 100% CorrectQ: revenue (sales)Answer:amount charged for the delivery of goods or servicesQ: cost of sales (cogs)Answer: Q: operating income (EBIT)Answer: Answer: financial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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