According to research, movements in stock prices are most closely related to movements in which financial statement?
A) Balance sheet
B) Income statement
C) Statement of owners' equity
D) Cash flow statement

Question

Quizplus · Accepted Answer

The income statement reveals a company's revenue, expenses, and profits over a certain period. This provides investors with insights into the company's current financial performance, which can influence the stock price of the company. As a result, movements in stock prices are most closely related to movements in the income statement.

According to Research, Movements in Stock Prices Are Most Closely