In examining the issue of whether the choice of accounting methods affects stock prices,studies have found that:
A) accounting depreciation methods can significantly affect stock prices.
B) switching depreciation methods can significantly affect stock prices.
C) accounting changes that increase accounting earnings also increases stock prices.
D) accounting changes can affect stock prices if the company were either to withhold information or provide incorrect information.
E) All of

Question

Quizplus · Accepted Answer

Accounting changes can affect stock prices if they involve withholding or providing incorrect information, as this impacts investor perception and trust.

In Examining the Issue of Whether the Choice of Accounting