It has been found that prices often lead earnings. Why is this thought to be the case:

I.Accounting recognition criteria are less stringent for losses than for gains.

II.Accounting conservatism 'garbles' the true earnings signal about company value.

III. Accounting statements are poor at incorporating information about human capital and other intangibles.

IV. None of the above.

Select one:

II and III.

I and III.

I, II, III.

IV.