Which of the Following Will Most Directly Determine the Market

question 61

Multiple Choice

Which of the following will most directly determine the market price of a business or physical asset?

• A) cost of the asset
• B) expected future net earnings derived from the asset
• C) book value (original purchase price minus depreciation) of the asset
• D) age of the asset

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Definitions:

Debit Column

In bookkeeping, the column in an account where debits are recorded, typically on the left-hand side.

Assets

Economic resources owned or controlled by a business or individual, expected to bring future benefits.

Expenses

The costs incurred in the process of generating revenues, including costs like rent, salaries, and utilities.

Revenues

The gross revenue stemming from the primary operational activities of a firm, particularly from selling products or services.