- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 14. Evaluating Quality of Financial Reports
- Subject 2. Evaluating the Quality of Financial Reports
CFA Practice Question
Beneish model can be used to check if:
B. A company's operating cash flow is sustainable.
C. A company's not going to meet its debt obligations.
A. A company is likely to be a manipulator of its earnings.
B. A company's operating cash flow is sustainable.
C. A company's not going to meet its debt obligations.
Correct Answer: A
It is a model developed to assess the likelihood of misreporting of earnings.
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