Question

A client provides a current balance sheet to the financial planner during the initial data-gathering phase of the financial planning process. This financial statement will enable the financial planner to gain an understanding of all of the following except

	1.	Size of the client’s net cash flow.
	2.	Client’s use of debt.
	3.	Diversification of the client’s assets
	4.	Client’s liquidity position.

Answer 1

Balance sheet does not give indication of net cash flow, which is known from cash flow statement.

Hence option 1 Size of the client's net cash flow

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