All of the Following Are Accounting Factors That Will Cause

question 49

Multiple Choice

All of the following are accounting factors that will cause a firm's value-to-book ratio to decrease over time except:

• A) recognizing unrealized gains on assets
• B) a loss of competitive advantage through changes in technology or other factors
• C) earning a high ROCE (above the equity cost of capital) on off-balance-sheet R&D assets
• D) earning a high ROCE (above the equity cost of capital) on off-balance-sheet intangible assets (such as brand equity) over time

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Definitions:

Simple Cuboidal

A type of epithelial tissue composed of a single layer of cube-shaped cells, often engaged in secretion and absorption.

Microvilli

Tiny, finger-like projections on the surface of some cells that increase their surface area for absorption.

Proximal Convoluted Tubule

The portion of the nephron in the kidney where the majority of the reabsorption of water, ions, and nutrients occurs.

Distal Convoluted Tubule

A portion of the nephron in the kidney where the final adjustments in urine composition are made, involving selective reabsorption and secretion.