Classify Each of the Following As

question 149

Multiple Choice

Classify each of the following as:
-Adding refrigerant to an air conditioning system

• A)Ordinary maintenance and repairs
• B)Asset improvements
• C)Extraordinary repairs

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Definitions:

ROE

Return on equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using assets to generate profits.

Liquidation Value

The estimated total value of a company's physical assets if it were to go out of business and the assets sold off.

Replacement Cost

The amount of money required to replace an asset at the current market value.

Tobin's Q

A ratio comparing the market value of a company's assets to their replacement cost, used to evaluate whether a company is over or undervalued.