CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

Financial statements are an input into which step in the financial statement analysis framework?
A. Collect data
B. Process data
C. Analyze/interpret the processed data
Explanation: Sources of information for this step are financial statements, economic and industry data, interviews, etc.

User Contributed Comments 5

User Comment
smxx i do not understand how financial statements are an input into the data collection step. my guess was answer B.

which activity is the processing step then?
LyncKidd I thought of it like it was more of an output of Collecting Data that is then used as an input when Processing. I can see it being an input gathering to complete the Collect Data step though.
sm200 If you think of it from the perspective of an analyst you would collect data to come to a buy/sell decision and financial statements would be part of the data you collect.
LoweJoseph you need the financial statements to collect the data is the way I thought of it
HarperWang I just feel that a few questions are kind of language game...
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