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Short Case Scenario 15-1
John Smith, a Minnesota native, has recently been elected to the U.S. House of Representatives. John, a long-time college professor, was elected on a platform of educational reform. Somehow, John finds himself appointed to the Joint Economic and Financial Services Committees. John is having a hard time understanding the testimony before each committee, but is hesitant to ask too many questions.
-There is a discussion of M-1 and M-2.Explain M-1 and M-2.
Book Value
The value of an asset according to its balance sheet account balance, taking into consideration the cost of the asset minus depreciation.
Total Net Assets
The sum of all assets minus the liabilities, representing the owner's equity in a company.
Total Capital
The sum of a company's debt and equity, representing the total funds available for its operations and growth.
Association
A group of people organized for a joint purpose or to carry out a common goal.
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