A Stock's Price Will Fall If There Is

question 20

Multiple Choice

A stock's price will fall if there is

• A)a decrease in perceived risk.
• B)an increase in the required rate of return.
• C)an increase in the future sales price.
• D)current dividends are high.

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Definitions:

Journalized Closing Entries

These are the final entries made in the accounting ledger to close the books at the end of an accounting period, ensuring that income and expense accounts are properly reset for the next period.

Adjusting Entries

Journal entries made at the end of an accounting period to update the ledger for items that are not recorded during the operating period.

Financial Statements

Reports that summarize the financial performance and position of a business, including balance sheet, income statement, and cash flow statement.

End-Of-Period Spreadsheet

A financial document used to gather and adjust account information from the ledger in order to prepare financial statements at the end of an accounting period.