In Examining the Issue of Whether the Choice of Accounting

question 16

Multiple Choice

In examining the issue of whether the choice of accounting methods affects stock prices,studies have found that:

• A)accounting depreciation methods can significantly affect stock prices.
• B)switching depreciation methods can significantly affect stock prices.
• C)accounting changes that increase accounting earnings also increase stock prices.
• D)accounting changes can affect stock prices if the company were either to withhold information or provide incorrect information.
• E)accounting reporting has little,if any effect,ever on stock prices.

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Definitions:

Preoccupied

Being engrossed or absorbed in thoughts, concerns, or activities, often to the extent of being unaware of other things.

Esteem Needs

A higher-level psychological requirement for a person to have self-respect and the respect of peers; includes feelings of mastery, achievement, and recognition.

Adolescence

is a transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, co-workers, or a larger entity.