- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 5. Capital Investments and Capital Allocation
- Subject 3. Capital Allocation Principles and Pitfalls
CFA Practice Question
In corporate finance, managers should be primarily concerned with cash flows as opposed to profits. The purpose of cash-flow measurement is recognizing the ______.
B. risk and size of profit
C. cash flows as being less variable than accounting profit
A. risk and timing of cash flows
B. risk and size of profit
C. cash flows as being less variable than accounting profit
Correct Answer: A
User Contributed Comments 1
| User | Comment |
|---|---|
| mdejesus | too easy |