Adventis FMC Level 1 Exam Update

Adventis FMC Level 1 Exam Update

financial statement communicates what? - ✔✔- financial condition
- results of operations
- various other activities of an organization
how board of directors use financial data... - ✔✔- hold management accountable - make board-level
decisions about corporate strategy
how company management uses financial data... - ✔✔- measure performance
- make strategic, operating and financial decisions
how creditors use financial data... - ✔✔- measure creditworthiness
- liquidity
- bankruptcy risk
how investors use financial data... - ✔✔make decisions on buying/selling equity investments
how acquirers use financial data... - ✔✔- determine valuation
- make investment decisions
how regulators use financial data... - ✔✔determine whether company is operating according to
regulations/law
what does the income statement present? - ✔✔results of operations over a period of time
what is the purpose of the income statement? - ✔✔to show whether the company made or lost money
during the period reported
what does the income statement indicate? - ✔✔how revenues are translated into net income through
subtracting expenses