Examlex

Solved

Explain the Meaning of the Terms, Cost and Market, as Used

question 136

Essay

Explain the meaning of the terms, cost and market, as used in the application of the lower-of-cost-or-market rule.


Definitions:

Share Split

A business move where a company splits its current shares into additional ones to increase the shares' marketability.

Share Price

The current market price of a single share of a company's stock.

Reverse Stock Split

A corporate action in which a company decreases the number of its outstanding shares to increase the share price without changing the company's market capitalization.

Market Value

The ongoing cost at which a service or asset is being exchanged in the market.

Related Questions