CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

To gain insight into what portion of a company's assets is liquid, an analyst will most likely use ______.
A. the cash ratio
B. the current ratio
C. common-size balance sheets
Explanation: A common-size balance sheet expresses all balance sheet accounts as a percentage of total assets.

User Contributed Comments 2

User Comment
kingirm I think it is subjective but maybe CFAInstitute thinks otherwise .... I always look at the current ratio first. Who use the common size financial statements anyways?!
jacojacobs I also would go for current ratio, and only use common size FS to compare companies.
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