Scipio_Academy

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A deferred tax
asset (DTA) and a deferred tax liability (DTL) are derived from differences in
taxes payable and the amount of tax expense recognized on the income statement.
DTA & DTL represent an amount of income tax expense that a company will receive
credit for, or be liable for in the future. Increases (decreases) in tax rates
will increase (decrease) DTA and DTL. Tax rates dictate the amount of deferred
taxes to be recorded because it determines the amount of taxes to be paid. 

Formula

Income Tax Expense = taxes payable + Change in DTL – Change in DTA

Increases
(decreases) to DTL will result in higher (lower) income tax expense. Increases
(decreases) to DTA will result in lower (higher) income tax expense.

[Scipio_Academy]

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In this case, you should not think about this as “aggregate demand”, which is a macro-econ concept. In this case, the firm faces a horizontal demand curve because demand for a homogenous product (perfect competition) is perfectly elastic. The consumer will completely abandon Firm A for Firm B if Firm A raises their price. If Firm A keeps its price at market levels, they will be able to sell all quantity produced. The demand curve facing the market is still downward sloping because of the law of demand for a normal good. As price declines, quantity demanded for that good increases.

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Below are the weights of each topic in percentages. Topic Area	Level 1	Level 2
Ethical and Professional Standards	15	10-15
Quantitative  Methods	12	5-10
Economics	10	5-10
Financial Reporting and Analysis	20	15-20
Corporate Finance	7	5-15
Equity Investments	10	15-25
Fixed Income	10	10-20
Derivatives	5	5-15
Alternative Investments	4	5-10
Portfolio Management and Wealth Planning	7	5-10

https://www.cfainstitute.org/programs/cfaprogram/exams/Pages/exam_topic_area_weights.aspx

To answer your question, I would say that it’s not a good idea to plan to skip any sections, as you have stated in your follow-up comment. Focusing on your strengths is a key factor to moving through the exam at a steady pace. What you may find is that as you focus on your strengths you will be able to answer questions in those sections a lot easier giving you more time to spend on the topic areas that are more difficult.

You may consider making a strategy where you take your strongest sections first, which would cause some jumping around, and then working towards your weaker areas. According to the recent weightings of topic areas its possible that Portfolio Management will become more important when you take Level 2.

I hope this was helpful!

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