- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 24. Financial Analysis Techniques
- Subject 1. Analysis Tools and Techniques
CFA Practice Question
Ratios are most useful in identifying ______.
B. causes
C. problems
D. differences
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 |