Research Indicates That All of the Following Statements Are Correct

Multiple Choice

Research indicates that all of the following statements are correct, except:

A) Stock price movements are more closely related to income statement information than cash flow information.
B) Useful (but not perfect) models exist that use financial statement data to predict company bankruptcy.
C) Useful (but not perfect) models exist that use financial statement data to detect improper reporting of financial information.
D) Stock price movements are greater when a change in income is due to one-time items than when the change in income is due to persistent items.