Profits Are Down So the Controller Decides to Change the Corporation's

question 132

Multiple Choice

Profits are down so the controller decides to change the corporation's accounting policy relating to inventory costing.The change will allow the corporation to report higher income and higher assets,although the physical inventory has not changed.Which of the following statements is MOST correct?

• A) The stock price is likely to increase because income is higher.
• B) The stock price is likely to be unaffected because the stock market is efficient.
• C) The stock price is likely to decrease because reported inventory is higher.
• D) If the stock price increases, the stock market is efficient.

Comprehend the consequences of creating complements to products and their effects on demand.

Understand how changes in wages and cost of inputs affect market prices and quantities supplied and demanded.

Understand the role and functions of a market maker in financial markets.

Analyze how supply and demand affect market equilibrium and prices.

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Definitions:

Psychosocial Crises

Conflicts between personal impulses and the social world, which Erik Erikson proposed occur throughout one's life in eight distinct stages.

Developmental Stages

Distinct periods in an organism's life characterized by specific physical, cognitive, and social milestones that individuals pass through as they grow and develop.

Turning Points

Significant events, experiences, or decisions in an individual's life that alter the direction or course of their future.

Psychosocial Development

A theory proposed by Erik Erikson that describes how individuals evolve through various social and emotional stages from childhood to adulthood.