Book Value Equals

question 71

Multiple Choice

Book value equals

• A) (Assets + Liabilities)/Number of shares outstanding.
• B) (Liabilities - Assets)/Number of shares outstanding.
• C) (Assets + Liabilities)/Earnings per share.
• D) (Liabilities + Assets/Price-earnings ratio.
• E) (Assets - Liabilities)/Number of shares outstanding.

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Definitions:

Past Consideration

In contract law, a benefit or service previously performed and therefore cannot serve as consideration for a current contract.

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller, each having reasonable knowledge of all relevant facts.

Valid Consideration

Anything of value promised to another when making a contract that is legal and results in the formation of a binding agreement.

Uniform Commercial Code

An extensive collection of statutes that regulate every aspect of business dealings within the United States, aimed at standardizing the legal framework for sales and various commercial activities throughout the states.