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Basic Question 2 of 3
Which of the following statements is most accurate?
A. For mature companies, it would be preferable for financing activities to be the primary source of cash flows.
B. If a company has a large net income despite its negative operating cash flow, then this may be a sign of poor earnings quality.
C. One approach to the common-size analysis of the cash flow statement involves expression of each cash flow (inflows and outflows) as a percentage of total cash inflows.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios
CFA® 2024 Level I Curriculum, Volume 2, Module 5.