An Efficient Market Reflects

question 28

Multiple Choice

An efficient market reflects

• A) all publicly known information related to past events and announced future events.
• B) all information including predictions about future information.
• C) only the information related to events that have already occurred.
• D) only historical information.

---

Definitions:

Indirect Method

A cash flow statement methodology that adjusts net income for changes in non-cash transactions and working capital to calculate cash flow from operating activities.

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period.

Operating Activities

These activities involve the primary, day-to-day operations of a business, such as selling products, providing services, and incurring operating costs.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.