Which of the Following Is Not a Finding of Capital

question 30

Multiple Choice

Which of the following is not a finding of capital markets research?

• A) Earnings forecasts contain useful information.
• B) Voluntary disclosures benefit capital markets.
• C) The strength of the relationship between earnings announcements and share price movements is positively related to the size of an entity.
• D) Financial statement disclosures are perceived differently to footnote disclosures.

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Definitions:

Sales

Sales refer to the transactions in which goods or services are transferred from the seller to the buyer for money or value, representing the primary source of revenue for most businesses.

Cash Disbursements

The actual outflow of cash for expenses, such as paying salaries, suppliers, and other operating expenses.

Inventory Purchases

The total cost incurred by a business to buy goods for resale or raw materials to produce finished goods.

Operating Expenses

Costs related to the day-to-day functions of a business outside of direct labor and materials, such as rent, utilities, and office supplies.