CFA Practice Question

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CFA Practice Question

Ratios are most useful in identifying ______.

A. relationships
B. causes
C. problems
D. differences
Correct Answer: A

Ratios are most useful in identifying relationships between the components of financial statements.

User Contributed Comments 5

User Comment
viannie identify problems & causes only when we compare between 2 ratios
Fotsta you can not identify causes through ratios.Only problems, diff & relationships when comparing 2 ratios
endurance you can argue for all them
gill15 no you cant...have to think of it as WHAT happened and does NOT answer WHY it happened...
Paul7059 A bit too Aristotelian for CFA that question is
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