The Item That Causes the Greatest and Most Immediate Effect

question 62

Multiple Choice

The item that causes the greatest and most immediate effect on a company's stock price will generally be

• A)cash on hand.
• B)the company's solvency.
• C)profits.
• D)dependent upon the industry in which the company operates.

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Definitions:

Financial Accounting

The field of accounting that focuses on the summary, analysis, and reporting of financial transactions pertaining to a business to external users.

Managerial Accounting

The area of accounting focused on providing financial data and advice to company managers for decision-making purposes.

GAAP

Generally Accepted Accounting Principles encompass a series of standard accounting practices and rules for the creation of financial reports.

Financial Accounting

The field of accounting that focuses on providing information to external users such as investors, creditors, and regulators, primarily through financial statements.