Profits are down so the controller decides to change the corporation's accounting policy relating to
inventory costing.
The change will allow the corporation to report higher income and higher assets,
although the physical inventory has not changed. Which of the following statements is MOST
correct?
A) The stock price is likely to increase because income is higher.
B) The stock price is likely to be unaffected because the stock market is efficient.
C) If the stock price increases, the stock market is efficient.
D) The stock price is likely to decrease because reported inventory is higher.
B
You might also like to view...
During ________ testing, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the company to customer training and servicing requirements
A) beta B) research C) sales-wave D) alpha E) simulated
Which of the following was NOT discussed by your authors as stylistic devices or "tips" to consider when writing the research report?
A) prepare the appendix in a smaller font than that used for the report B) begin paragraphs with topic sentences which state the main idea of the paragraph C) use jargon sparingly D) proofread aloud E) use strong verbs
In January 2014, Bevis Company exchanged an old machine, with a book value of $256,000 and a fair value of $260,000, and paid $40,000 cash for a similar used machine having a fair value of $300,000 . The exchange lacked commercial substance. At what amount should the machine acquired in the exchange be recorded on Bevis' books?
a. $256,000 b. $296,000 c. $300,000 d. $304,000
In the context of security our concern is with the vulnerabilities of system resources
Indicate whether the statement is true or false.