If the Value of a Firm's Net Fixed Assets Equals

question 47

Multiple Choice

If the value of a firm's net fixed assets equals the value of the accumulated depreciation, then, from an accounting context, the fixed assets are:

• A)New
• B)Fully depreciated
• C)One-half depreciated
• D)Equal in value to the firm's current assets

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Definitions:

Par Value

The nominal value of a bond, stock, or coupon as stated in the financial instrument.

Shares

Ownership stakes in a company or financial asset that entail a proportional share in any distributed profits via dividends, should any be announced.

No-Par Common Stock

Common stock issued without a par value that has been assigned for its shares.

Stated Value

A value assigned to a corporation's stock for accounting purposes, which may bear no relation to the market value.