Is Material Covered Outside of the LOSs Tested?

K

KickinTheBricks

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
See subject.

I'm asking because one of the LOSs for reading 33 is to "interperet... commonly used balance sheet ratios." Yet, there are some example questions in which you clearly have to know how to calculate each of these. Should I err on the side of caution and learn how to calculate them all or can I just learn how to interpret them?

Although these ratios would not be that hard to learn, I'm more concerned with the overall concept of needing to know things that are not required by the LOSs.
 
No it will not be covered. If it is not in the LOS dont study it. You have to know how to calculate in order to interpret.
 
That's what I thought, and I can see your point about having to know how to calculate it. I guess I was just surprised to see practice questions that asked to calculate a given ratio without any interpretation at all.
 
Kick i found this on the website

Interpret - To explain or tell the meaning of; to present in understandable terms.

See others here

http://www.cfainstitute.org/cfaprog/courseofstudy/commandwords.html
 
You must log in or register to reply here.
Back
Top