CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

A company can determine if its ______ objective has been met by evaluating its ability to pay bills when due and meet unexpected needs for cash.

A. profitability
B. liquidity
C. long-term solvency
D. market strength
Correct Answer: B

A: A company can determine if its profitability objective has been met by evaluating its ability to earn a satisfactory net income.

C: A company can determine if its long-term solvency objective has been met by evaluating its ability to survive for many years.

D: A company can determine if its market strength objective has been met by evaluating its ability to increase the wealth of owners.

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khalifa92 good sammury
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