CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

According to the Framework for the Preparation and Presentation of Financial Statements, the objective of financial statements is fair presentation of a company's ______.

I. financial position
II. financial performance
III. cash flows
IV. earning power
A. I and II
B. I, II and III
C. All of them
Explanation: The objective of financial statements is the fair representation of a company's financial position, financial performance, and cash flows.

User Contributed Comments 3

User Comment
soukhov useful explanation
gaetmichel I guess "earnings power" assessment requires the use of judgment in the context of financial statements ANALYSIS, it's not an "objective" of financial statements.
poomie83 financial statements are retrospective in nature. Earnings power is a forecasting - forward looking
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