According to Sloan (1996), it is expected that

a. A trading strategy taking a short position in the stock of firms reporting relatively low levels of accruals and long position in the stock of firms reporting relatively high levels of accruals generates positive abnormal stock returns.

b.A trading strategy taking a short position in the stock of firms reporting relatively low levels of accruals and short position in the stock of firms reporting relatively high levels of accruals generates positive abnormal stock returns.

c. A trading strategy taking a long position in the stock of firms reporting relatively low levels of accruals and short position in the stock of firms reporting relatively high levels of accruals generates positive abnormal stock returns.

d. A trading strategy taking a long position in the stock of firms reporting relatively low levels of accruals and long position in the stock of firms reporting relatively high levels of accruals generates positive abnormal stock returns.