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

question 48

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.

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An individual enrolled in a higher education institution pursuing undergraduate, graduate, or professional studies.

Solitary Confinement

A form of imprisonment where an inmate is isolated from any human contact, except that which is necessary for basic sustenance and functionality.

Ostracism

The exclusion or rejection of a person from a social or professional group.

Autonomy

The capacity to make an informed, uncoerced decision or the right of self-governance, often considered a fundamental aspect of working ethically with individuals.