- CFA Exams
- CFA Exam: Level I 2021
- Study Session 6. Financial Reporting and Analysis (1)
- Reading 19. Introduction to Financial Statement Analysis
- Subject 2. Major Financial Statements
CFA Practice Question
Which financial statement shows whether a company has met its profitability goal?
B. Balance sheet
C. Statement of cash flows
A. Income statement
B. Balance sheet
C. Statement of cash flows
Correct Answer: A
The income statement shows whether a company has met its profitability goal. This statement summarizes the revenues and expenses incurred by a business over a period of time.
User Contributed Comments 1
| User | Comment |
|---|---|
| FozzeyBear | ...except if a company measures it's profitability in free cash flow... |