Which of the Following Is True Regarding the Predictive Ability

question 49

Multiple Choice

Which of the following is true regarding the predictive ability of accounting data?

• A)The predictive ability objective is validated by market efficiency.
• B)Previous studies have indicated that historical cost income is not as good a predictor of itself as general price-level-adjusted income or current value income.
• C)Studies have found that income measurement methods that have the greatest predictive ability are also best in terms of most other objectives.
• D)Predictive ability is the same as the quantifiability standard of ASOBAT.

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