The Worth of Tangible Assets Is Determined Using Which of the Following

question 115

Multiple Choice

The worth of tangible assets is determined using which of the following methods?

• A) Balance sheet method of business valuation
• B) Asset method of business valuation
• C) Income statement method of valuation
• D) Cash-flow method of valuation

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Definitions:

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Common-Size Financial Statement

A financial statement that includes a percentage breakdown of each item.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Statement of Cash Flows

A financial document detailing the cash inflows and outflows from operating, investing, and financing activities of a company over a period.