- CFA Exams
- CFA Exam: Level I 2021
- Study Session 9. Financial Reporting and Analysis (4)
- Reading 29. Financial Reporting Quality
- Subject 4. Detection of Financial Reporting Quality Issues
CFA Practice Question
When examining revenue relationships, an analyst should check the turnover ratios of ______, as suggested in the reading.
II. inventory
III. receivables
I. assets
II. inventory
III. receivables
Correct Answer: I and III
User Contributed Comments 2
| User | Comment |
|---|---|
| leo_rhan | Is inventory not an asset item? |
| dada | leo_rhan: In the textbook "Look at revenue relationships.", it specifies to calculate receivables turnover and asset turnover. The asset refers to long-term asset/investment, not inventory. |