CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following items has become increasingly important as an analytical tool to determine the financial health of a business?

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.

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