Book Value

question 2

Multiple Choice

Book value:

• A)is equivalent to market value for firms with non-current assets.
• B)is based on historical cost.
• C)generally tends to exceed market value when non-current assets are included.
• D)is more of a financial than an accounting valuation.
• E)is adjusted to market value whenever the market value exceeds the stated book value.

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Definitions:

Set Point Theory

A theory suggesting that the body regulates its weight and energy balance through internal controls, maintaining a stable weight over time.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, or praise.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Esteem Needs

According to Maslow's hierarchy of needs, the need for self-esteem, achievement, respect, and recognition from others.