In Examining the Issue of Whether the Choice of Accounting

question 19

Multiple Choice

In examining the issue of whether the choice of accounting methods affects stock prices, studies have found that:

• A) accounting depreciation methods can significantly affect stock prices.
• B) switching depreciation methods can significantly affect stock prices.
• C) accounting changes that increase accounting earnings also increases stock prices.
• D) accounting changes can affect stock prices if the company were either to withhold information or provide incorrect information.

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Definitions:

Performance Targets

Specific goals set by a company or an individual, often quantifiable, aimed at measuring success or achievement in certain areas.

Ethical Responsibility

This concept pertains to the duty to act in a morally sound way, considering the impact of one's actions on others and society.

Personal Ethical Standards

The moral principles that an individual upholds in their personal and professional life.

Local Newspaper

A publication focusing on news, events, and topics of interest within a specific local or regional community.