tailieunhanh - Learning Financial Accounting Theory_4

Tham khảo tài liệu 'learning financial accounting theory_4', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | The Information Perspective on Decision Usefulness 165 Questions and Problems 1. 2. 3. Explain the information perspective on financial reporting. Does it rely on the historical cost basis of accounting Refer to the separation of market-wide and firm-specific security returns as shown in Figure . What factors could reduce the accuracy o abnormal returns Explain why the market might begin to anticipate the GN or BN in earnings as much as a year in advance as Ball and Brown found in Figure . CGA-Canada CGA-Canada f the estimate of CGA-Canada 4. Give examples of components of net income with a. High persistence b. Persistence of 1 c. Persistence of 0 CGA-Canada 5. Explain why it is desirable to find the exact time that the market first became aware of an item of accounting information if any security price reaction to this information is to be detected. Can such a time always be found1 Explain why or why not. What can researchers do when the exact time cannot be isolated CGA-Canada m of accounting 6. A researcher finds evidence of a security price reaction to an ite information during a narrow window of three days surrounding the date of release of this information and claims that it was the accounring information that caused the security price reaction. Another researcher fi security price reaction to a different item of accounting information during a wide window beginning 12 months prior to the release of the financial statements containing that item. This researcher does not claim that the accounting information caused the security price reaction but only that the the market price reaction were associated. Explain why one can claim causation for a narrow window but not for a wide window. Which price reaction constitutes the stronger evidence accounting information Explain. nds evidence of information and for usefulness of 7. XYZ Ltd. is a large retail bookstore chain listed on a major stock exchange and its reported net income for the year ended December 31

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