Why Is the Efficient Securities Market Hypothesis Important for Accounting

Multiple Choice

Why is the efficient securities market hypothesis important for accounting?

A) When providing financial information, management need only consider the specifically identifiable users who they know will rely on the information.
B) Accounting standards can assume that the majority of market participants have a reasonable level of sophistication.
C) Individuals with information that is not publicly available cannot make significant profits.
D) Accounting information is the only source of financial information that markets use.