Which of the Following Statements Is $\underline{not}$ Supported by Empirical Evidence from Capital Market Research?
A)Accounting Earnings

question 49

Multiple Choice

Which of the following statements is $\underline{not}$ supported by empirical evidence from capital market research?

• A)Accounting earnings appear to have information content and to affect security prices.
• B)Alternative accounting policies with no apparent direct or indirect cash flow consequences to the firm do not seem to affect security prices.
• C)There are no incentives to choose certain alternative accounting policies over others because there are never cash consequences.
• D)Accounting-based risk measures correlate with market risk measures, suggesting that accounting numbers are useful for risk assessment.

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