The Main Difference Between Accounting Measures of Firm Performance and Stock-Market

Multiple Choice

The main difference between accounting measures of firm performance and stock-market measures of firm performance is:

A) Accounting measures are less reliable because of firms' discretion over how they apply accounting conventions
B) Stock market measures are less reliable because share prices are so volatile
C) Accounting data offers a sound basis for forecasting future performance
D) Accounting measures are backward looking;stock market measures are forward looking