If Market Values of Equity Exceed Book Values of Equity,then

question 24

Multiple Choice

If market values of equity exceed book values of equity,then:

• A) equity has been depreciated too rapidly.
• B) the firm uses accrual-based accounting.
• C) profit potential is expected to be attractive.
• D) the firm is holding too much cash.

---

Definitions:

Metabolic Acidosis

A condition characterized by an increase in acidity in the blood and body tissues, often due to the body producing too much acid or the kidneys not removing enough acid.

Acid-Base Imbalance

A disruption in the balance of acid and alkaline compounds in the body, potentially leading to health complications if not corrected.

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, leading to physical and psychological dependence.

Electrolyte Imbalance

A condition where the levels of electrolytes (minerals in your blood, urine, and body fluids) are either too high or too low, affecting bodily functions.