In Security-Price Research, Which of the Following Is an Indirect

Multiple Choice

In security-price research, which of the following is an indirect consequence of an accounting policy change?

A) The value of the firm is affected through an effect on cash flow.
B) The value of the firm is affected through an effect on net income.
C) The value of the firm is affected through an effect on owners.
D) The value of the firm is not affected.