Which of the Following Values Treats the Firm as a Going

question 68

Multiple Choice

Which of the following values treats the firm as a going concern?

• A)Market value
• B)Book value
• C)Liquidation value
• D)Both (b) and (c)

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Definitions:

Goods Completed

Finished goods that have gone through the manufacturing process and are ready to be sold or distributed.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First In, First Out."

Cost Per Equivalent Unit

A measurement used in cost accounting to calculate the cost assigned to each unit produced, by considering the costs incurred at each stage of production.

Materials Used

The cost of raw materials and supplies that are consumed in the manufacturing process to produce goods.