- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 16. Introduction to Financial Statement Analysis
- Subject 1. The Roles of Financial Reporting and Financial Statement Analysis
CFA Practice Question
Creditors and investors use financial performance evaluation to judge a company's ______.
II. current position
III. future potential and its related risk
I. past performance
II. current position
III. future potential and its related risk
A. II and III
B. I and III
C. I, II and III
Explanation: Creditors and investors use financial performance evaluation to judge a company's past performance, current position, and future potential and its related risk.
User Contributed Comments 2
| User | Comment |
|---|---|
| TheProfet | Performance is not an indication of position. You look to the balance sheet for this information. |
| fit419 | That was my thought too. That confused me. |