Indicate in Which Cases Book Value Is a Reasonable Approximation

question 8

Essay

Indicate in which cases book value is a reasonable approximation for evaluating the asset or liability.Answer "Yes" if book value is a reasonable approximation and "No" if it is not.
A.Floating-rate debt.
B.Outstanding bonds that are secure and actively traded.
C.Discontinued operations.
D.Stake in a publicly traded subsidiary.
E.Excess real estate.
F.Loans to nonconsolidated subsidiaries and other companies (assume interest rates and credit risk have not changed).
G.An outstanding convertible bond deep in the money.
H.Employee stock options.

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Definitions:

Sour Receptors

Specialized sensory cells located in the taste buds that detect sour tastes.

Salty Receptors

Taste receptors on the tongue that detect the presence of salt, one of the basic tastes.

Dark Adaptation

The process by which the eyes increase their sensitivity to low levels of light, enabling vision in dim conditions.

Sensory Threshold

The minimum level of intensity at which a stimulus can be detected by the senses.