Which of the Following Is a Finding of Beaver,Lambert and Morse

question 26

Multiple Choice

Which of the following is a finding of Beaver,Lambert and Morse (1980) ?

• A) Share prices and related returns are related to accounting earnings.
• B) Over short intervals, earnings are more strongly associated with returns than are realised cash flows.
• C) Fair value estimates of bank's financial instruments seem to provide a better explanation of bank share prices than historical cost.
• D) Revaluation of assets results in better alignment of market and book values.

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Definitions:

Egocentrism

A cognitive trait where individuals, particularly children in Piaget's preoperational stage, are unable to see perspectives other than their own.

Centration

A cognitive limitation in early childhood, where a child focuses only on one aspect of a situation or problem, neglecting other important factors.

Perspective

A particular attitude towards or way of regarding something; a point of view.

Egocentric

Pertaining to an inability to understand or consider the perspectives of others, focusing solely on one's own viewpoint.