The ceo of high tech international decides to change an accounting method at the end of the current year. the change results in reported profits increasing by 5%, but the company's cash flows are not changed. if capital markets are efficient, then
a. the stock price will not be affected by the accounting change.
b. the stock price will increase due to higher profits.
c. the stock price will increase only if the accounting change will also result in higher profits in the next year.
d. the stock price will decrease because accounting method changes are not permitted under generally accepted accounting principles.

Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle is the rationale for why plant assets are not reported at liquidation value. (note: do not use the historical cost principle.) (b) select the accounting assumption or principle indicates that personal and business record-keeping should be separately maintained. (c) select the accounting assumption or principle assumes that the dollar is the "measuring stick" used to report on financial performance. (d) select the accounting assumption or principle separates financial information into time periods for reporting purposes. (e) select the accounting assumption or principle measurement basis used when a reliable estimate of fair value is not available. (f) select the accounting assumption or principle dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

Which two of the following are benefits of consumer programs

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.