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EC-Council

712-50 · Question #455

From the CISO's perspective in looking at financial statements, the statement of retained earnings of an organization:

The correct answer is D. Represents the percentage of earnings that could in part be used to finance future security. The statement of retained earnings shows the portion of net income retained by the organization after dividends are paid. These retained earnings can be reinvested in the company, such as financing security initiatives or technology upgrades.

Strategic Planning, Finance, Procurement, and Vendor Management

Question

From the CISO's perspective in looking at financial statements, the statement of retained earnings of an organization:

Options

  • AHas a direct correlation with the CISO's budget
  • BRepresents, in part, the savings generated by the proper acquisition and implementation of
  • CRepresents the sum of all capital expenditures
  • DRepresents the percentage of earnings that could in part be used to finance future security

How the community answered

(14 responses)
  • A
    7% (1)
  • C
    14% (2)
  • D
    79% (11)

Explanation

The statement of retained earnings shows the portion of net income retained by the organization after dividends are paid. These retained earnings can be reinvested in the company, such as financing security initiatives or technology upgrades.

Topics

#financial statements#retained earnings#security budget#CISO financial literacy

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