- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 5. Analyzing Statements of Cash Flows II
- Subject 1. Evaluating Sources and Uses of Cash
CFA Practice Question
Which of the following items has become increasingly important as an analytical tool to determine the financial health of a business?
B. Cash flow from operations
C. Cash flow from investing and financing activities
A. Net income
B. Cash flow from operations
C. Cash flow from investing and financing activities
Correct Answer: B
Cash flow from operations has become increasingly important as an analytical tool to determine the financial health of a business. A company could be profitable and yet have no cash. Ultimately, a company must generate cash to succeed.
User Contributed Comments 0
You need to log in first to add your comment.