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

Question

Quizplus · Accepted Answer

Studies generally suggest that accounting changes affect share prices primarily when they involve withholding or providing incorrect information, as this impacts investor perception and decision-making.

In Examining the Issue of Whether the Choice of Accounting