Question
A company who is a lessee adopted the new lease standard which resulted in a change in the net profit and balance sheet items. All
"A company who is a lessee adopted the new lease standard which resulted in a change in the net profit and balance sheet items. All of the following are true, except:"
The mechanistic hypothesis suggests that investors will not adjust their price expectations for the company. | ||
The mechanistic hypothesis suggests that investors will adjust their price expectations for the company. | ||
The efficient market hypothesis (semi-strong form) predicts that investors will not change their price expectations for the company. | ||
"The efficient market hypothesis (semi-strong form) predicts that investors will realise that no real change has occurred, just a change in accounting policy." |
Normative theories:
explain why people behave in certain ways. | ||
prescribe what should be the case based on a specific objective. | ||
are based on what is happening in the world. | ||
predicts unobserved phenomena. |
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