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Basic Question 0 of 13
Which balance sheet line item is closely related to income statement projections?
B. retained earnings.
C. invested capital.
A. accounts receivable.
B. retained earnings.
C. invested capital.
User Contributed Comments 3
| User | Comment |
|---|---|
| tbg091789 | The 1st sentence in Subject 3 says so. |
| akirchner1 | Some balance sheet line items such as retained earnings flow directly from the income statement whereas other lines, such as accounts receivables are very closely linked to the income statement projections. |
| jimmyvo | Per both the the Subject #3 reading here and the CFAI textbook. Account Receivable is closely related to projections. Retained earnings flow directly from income statement. |
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Learning Outcome Statements
describe sensitivity risk measures and scenario risk measures and compare these measures to VaR;
demonstrate how equity, fixed-income, and options exposure measures may be used in measuring and managing market risk and volatility risk;
describe the use of sensitivity risk measures and scenario risk measures;
describe advantages and limitations of sensitivity risk measures and scenario risk measures;
CFA® 2025 Level II Curriculum, Volume 5, Module 41.