Answer:
The stock price will not be affected by the accounting change.
Explanation:
Since it is assumed that the capital markets are efficient, the stock's market price is expected to reflect all available and relevant information. This implies that all the necessary information is already incorporated into the stock price. The CEO cannot deceive the market through this change in accounting method. Therefore, the stock price will not be undervalued or overvalued. Moreover, the change in accounting method only shifts the timing for reporting income.
it's an example of capital
Answer:
C
Explanation: I took the Unit Test and got it right!
Answer:
the wealth gap.
Explanation:
The difference in income between the richest and poorest citizens is called the wealth gap.
This ultimately implies that, the wealth gap is the difference between the richest and poorest citizens living in a geographical location based on the level of their assets and net worth i.e assets minus their debts.
Hence, the information generated by the government based on the wealth gap of its citizens is typically used for formulating economic policies, plan and financial budgets.