The Main Purpose of a Market-Value Balance Sheet Is To

question 43

Multiple Choice

The main purpose of a market-value balance sheet is to:

• A) show an inflated value of the firm.
• B) avoid the recording of certain liabilities.
• C) value assets and liabilities without GAAP restrictions.
• D) improve the credit rating of the firm.

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Definitions:

Drive

An internal motivational state that compels an organism to engage in behavior necessary to satisfy a physiological need.

Incentive

A factor that inspires or prompts a person to act or behave in a specified manner.

Physiological Needs

Fundamental human necessities, such as food, water, shelter, and warmth, that must be satisfied for survival.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.