- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 15. Evaluating Quality of Financial Reports
- Subject 5. Cash Flow Quality
CFA Practice Question
Cash flow can be described as "low quality" because of:
II. bad economic performance.
I. bad reporting quality.
II. bad economic performance.
A. I only
B. II only
C. I and II
Explanation: Cash flow can be described as "low quality" either because the reported information properly represents genuinely bad economic performance or because the reported information misrepresents economic reality.
User Contributed Comments 0
You need to log in first to add your comment.