When Making fiNancial Decisions Related to Assets, You Should

question 40

Multiple Choice

When making financial decisions related to assets, you should:

• A)always consider market values.
• B)place more emphasis on book values than on market values.
• C)rely primarily on the value of assets as shown on the statement of financial position.
• D)place primary emphasis on historical costs.
• E)only consider market values if they are less than book values.

---

Definitions:

Aggregate Demand

The full volume of demand for goods and services in an economy, priced at a particular level, within a designated period.

Aggregate Supply

Aggregate supply represents the total amount of goods and services that producers are willing and able to supply at a given overall price level in an economy.

Stock Market Prices

The current price at which a share of a company is bought or sold in the stock market.

Aggregate Demand

The total demand for all goods and services within a particular market over a specific time period.