Calculate the Value of the Firm

question 2

Multiple Choice

Calculate the value of the firm:

• A) $90.4 millions
• B) $104 millions
• C) $82.6 millions
• D) none of the above

---

Definitions:

Permanent Accounts

Accounts that are not closed at the end of the accounting period, hence carry their balances over into the next period; these include asset, liability, and equity accounts.

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and dividend accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances before preparing financial statements.

Unearned Service Revenue

Represents payments received for services that have not yet been performed or delivered, classified as a liability on the balance sheet.