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Basic Question 2 of 4
To evaluate the quality of financial reports an analyst should examine the statement of cash flows. The focus should be MOST LIKELY on:
B. financing cash flows.
C. investment cash flows.
A. operating cash flows.
B. financing cash flows.
C. investment cash flows.
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Colin Sampaleanu
Learning Outcome Statements
describe the concept of sustainable (persistent) earnings;
describe indicators of earnings quality;
explain mean reversion in earnings and how the accruals component of earnings affects the speed of mean reversion;
CFA® 2025 Level II Curriculum, Volume 2, Module 14.