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CFA Institute Exam CFA-Level-I Topic 2 Question 2 Discussion

Actual exam question for CFA Institute's CFA-Level-I exam
Question #: 2
Topic #: 2
[All CFA-Level-I Questions]

Which of the following would not be a limitation of the balance sheet?

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Suggested Answer: C
by Francene at Aug 27, 2024, 09:58 PM

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Joseph
19 days ago
The balance sheet is like a snapshot of a company's financial health - it's not the whole movie, you know?
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Cherrie
22 days ago
Wait, is 'not a limitation' a trick question? I'm scratching my head on this one.
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Cassandra
23 hours ago
No, it's not a trick question. Let me help you out.
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Coral
28 days ago
The balance sheet doesn't capture intangible assets like brand value, which is definitely a limitation.
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Miesha
7 days ago
It's important to consider the limitations of the balance sheet when analyzing a company's financial position.
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Annelle
13 days ago
That's true, the balance sheet does have limitations in capturing certain assets.
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Gracie
19 days ago
Intangible assets like brand value are not included in the balance sheet.
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Hyun
1 months ago
Lack of fair value accounting for some assets and liabilities is a limitation, not a strength.
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Marjory
2 days ago
It can be difficult to determine the fair value of certain assets.
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Mickie
1 months ago
Fair value accounting can be subjective.
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Deane
2 months ago
The balance sheet doesn't show future cash flows, which is a key limitation.
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Sol
25 days ago
The balance sheet doesn't consider intangible assets.
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Jess
29 days ago
Future cash flows are not included in the balance sheet.
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Latosha
1 months ago
It doesn't reflect the current market value of assets.
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Alisha
1 months ago
Balance sheet only shows a snapshot in time.
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Mendy
2 months ago
I agree with both of you. Another limitation could be that it doesn't reflect the market value of assets.
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Tatum
2 months ago
That's true, but another limitation could be that it doesn't include intangible assets.
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Charolette
2 months ago
I think one limitation could be that it only shows a snapshot in time.
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