The Main Difference Between Accounting Measures of Firm Performance and Stock-Market

question 27

Multiple Choice

The main difference between accounting measures of firm performance and stock-market measures of firm performance is:

• A)Accounting measures are less reliable because of firms' discretion over how they apply accounting conventions
• B)Stock market measures are less reliable because share prices are so volatile
• C)Accounting data offers a sound basis for forecasting future performance
• D)Accounting measures are backward looking;stock market measures are forward looking

---

Definitions:

Homeless

Individuals who lack a fixed, regular, and adequate nighttime residence, including those living in shelters or places not meant for human habitation.

Americans

People originating from or living in the United States of America.

Quintiles

Statistical values that divide a dataset into five equal parts, often used in economics to discuss income distribution.

Income

Money received, especially on a regular basis, for work or through investments.