A Conclusion Drawn from Ball and Brown's Information Content Studies

question 17

Multiple Choice

A conclusion drawn from Ball and Brown's information content studies is:

• A)85-90% of the price adjustments to the change in profit of firms occur before the announcement month
• B)There is significant information content in the profit figure,however accounting is not the only source of information about firms
• C)Quarterly accounting profits are a timely source of information for the capital market
• D)A and B

---

Definitions:

Triangle

A polygon with three edges and three vertices, representing the simplest form of a polygonal shape.

Bachelor

A man who has never been married; or a university degree traditionally awarded after completing undergraduate studies.

Game

A structured form of play, often undertaken for entertainment or fun, and sometimes used as an educational tool.

Hope

An emotional state of desire for a specific outcome to occur, often accompanied by a sense of optimism.