CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

True or False? Profitability means having enough cash available to pay debts when they are due.
Correct Answer: False

Profitability means the ability to earn enough income to attract and hold investment capital. Liquidity means having enough cash available to pay debts when they are due.

User Contributed Comments 8

User Comment
tomn Liquidity means the ability to meet short term obligations.
Solvency is the ability to meet long term obligations.
Profitability: acquiring an excess of capital over expenses.
Vikku Great explanation tomn.
bantoo brilliant analysis tomn!
ldfrench tomm, are you Benjamin Franklin? YOU ARE A GENIUS!!!!!!!
lhp112 Thanks Tomn
urzzz SuperTomn
F79KHAN Thank you Tom that was a great breakdown.

Liquidity: Meet Short Term Obligation
Solvency: Long Term
Profitability: Additional Capital over Expenses
<3
alexa821 people in this study session have much better jokes than in FI and derivatives..I wonder why
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