CFA Practice Question

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CFA Practice Question

An analyst's examination of the performance of a company is least likely to include an assessment of a company's ______.

A. profitability
B. cash flow generating ability
C. assets relative to its liabilities
Correct Answer: C

Assessment of performance includes analysis of profitability and cash flow generating ability. The relationship between assets and liabilities is used to assess a company's financial position, not its performance.

User Contributed Comments 4

User Comment
tricorp OK....
ascruggs92 Semantics
seanj951 Wouldn't 'cash flow generating ability' be its potential not it's performance?
sshetty2 think about it.. if you're looking at debt to equity ratio's you would be examining a company's relative solvency. This is not necessarily related to their performance.
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