If Future Changes in Stock Prices Are Unpredictable,then We Say

question 16

Multiple Choice

If future changes in stock prices are unpredictable,then we say that the stock prices follow a

• A)random walk.
• B)straight and narrow path.
• C)meandering path.
• D)generalized walk.

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Definitions:

Closing Entries

Entries recorded at the closing of an accounting cycle to shift balances from temporary to permanent accounts, readying the accounts for the upcoming period.

Post-Closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, serving to check the balance of debits and credits.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to reflect accrued incomes and expenses for the period.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business resources.