FOB105 Financial Management Body of Knowledge (FMBOK) Practice Exam 2025 - Free Financial Management Practice Questions and Study Guide

Question: 1 / 400

What primary information does a financial analyst use?

Public relations news and press releases

Financial statements and market data

The primary focus for a financial analyst is on financial statements and market data, as these provide crucial quantitative information necessary for evaluating a company’s performance and making informed financial decisions. Financial statements, which include the balance sheet, income statement, and cash flow statement, offer insights into a company's financial health, profitability, and liquidity. Market data, such as stock prices, trading volumes, and economic indicators, helps analysts assess market trends and the competitive landscape.

This combination allows financial analysts to perform various analyses, including valuation, forecasting, and risk assessment, which are integral to financial management and investment strategy. Other types of information, such as public relations news and press releases, while useful for context, do not provide the core financial metrics required for in-depth analysis. Similarly, corporate social responsibility reports and supplier assessment charts focus on specific aspects of operations and ethics and are not centered on financial performance and market behavior.

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Corporate social responsibility reports

Supplier assessment charts

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