Preparing financial statements mainly aims at providing users with the required information in order to help them make economic decisions. Current and potential investors are regarded as information users which are composed of diverse aspects. Investors seek to predict the future stock yields and this can be done through investigating the future stock prices. Hence, predicting future stock price is an essential aspect considered by potential investors. The present paper explores the relationship between changes in fundamental accounting variables with stock price variations of 70 firms listed on Tehran Stock Exchange in a period covering five years from 2006 to 2010 employing Correlation coefficient, adjusted R² and multiple regressions. The fundamental accounting variables include assets, liabilities, owner's equity, sale, operating income, net income, operating cash flow and investment cash flow. The empirical results reveal that there is a significant relationship between fundamental accounting variables and stock price variations of firms listed on Tehran Stock Exchange. That's why investors should have a special attention to fundamental accounting variables when predicting stock prices and making financial decisions.