CFA Practice Question

There are 96 practice questions for this study session.

CFA Practice Question

For most companies, projections for ______ are directly tied to the income statement.
A. retained earnings.
B. accounts receivable.
C. long-term assets.
Explanation: Retained earnings are directly from income statement.

User Contributed Comments 3

User Comment
Friso I disagree with this answer. Dividends are not part of the income statement and retained earnings are after dividends. Thus none of these answers really fit.
janis36 If you are doing forecasting you would start with forecasting sales and then projected AR would be linked to sales. I picked answer B.
giovannig Statement of income will in fact have change in retained earnings as the difference between this period and last period from the balance sheet.
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