CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

The issue of differences in accounting conservatism between companies is best addressed when companies are compared using which of the following ratios?
A. Price-to-earnings
B. Price-to-cash flow
C. Price-to-book value
Explanation: Using price-to-cash flow rather than price-to-earnings addresses the issue of differences in accounting conservatism between companies (differences in quality of earnings).

User Contributed Comments 1

User Comment
Sp1993 Basically read the Q carefully, I learnt this the hard way :l
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