Which One of the Following Statements Is NOT True

question 24

Multiple Choice

Which one of the following statements is NOT true?

• A) Competition among investors is an important driver of informational efficiency.
• B) If market prices reflect all relevant information about securities at a particular point in time, the market is informationally efficient.
• C) In an informationally efficient market, market prices adjust quickly to new information about a security as it becomes available.
• D) All of the above are true.

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Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing of a product, easily traceable to the finished product.

Equivalent Units Of Production

The number of production units that could have been completed within a given accounting period, given the resources consumed.

Average Cost Method

An inventory valuation method that calculates the cost of goods sold and ending inventory value based on the average cost of all similar items in inventory.

Direct Materials

Raw materials that can be directly traced to the production of goods in the manufacturing process.