25. Which of the following statements is false regarding adjusting entries? * A. Adjusting entries involve accruals or deferrals. B. Cash is neither debited nor credited as a result of adjusting entries. C. Each adjusting entry affects one revenue account and one expense account D. Each adjusting entry affects one statement of financial position account and one income

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.