It Is True of the Australian Study by Brown Which

question 6

Multiple Choice

It is true of the Australian study by Brown which replicated Ball and Brown's original 1968 study that:
i.There was more of a price adjustment in the announcement month than in the original study
ii.There was less of a price adjustment in the announcement month than in the original study
iii.In Australia annual reports are a more important source of information about companies than they are in the United States
iv.In Australia annual reports are a less important source of information about companies than they are in the United States

• A)ii,iii
• B)ii,iv
• C)i,iii
• D)i,iv

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Definitions:

Merchandise Inventory

Represents the goods a company intends to sell to customers that are purchased and stored, evaluated as a current asset on the balance sheet.

F.O.B. Shipping Point

A term used in shipping contracts indicating that the buyer takes ownership and responsibility for goods once they leave the seller's premises.

F.O.B. Destination

A shipping term indicating that the seller retains risk and ownership of goods until they are delivered to the buyer's location.

Accounts Payable

A bookkeeping record indicating a business's need to settle a short-term financial debt owed to its lenders or vendors.