Book Value

question 38

Multiple Choice

Book value:

• A) Is equivalent to market value for firms with fixed assets.
• B) Is based on historical cost.
• C) Generally tends to exceed market value when fixed 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:

Behavior Consequence

The outcome or result of an action, which can either reinforce the behavior or deter it in the future.

Reinforcement

A psychological principle involving the use of rewards or punishments to increase or decrease the likelihood of a particular behavior.

Aversive Event

An unpleasant or undesirable occurrence that can lead to changes in behavior or psychological state.

Social Learning Theory

A theory that suggests people learn new behaviors through observational learning of others' actions and consequences.