The Book Value of a Firm Is

question 14

Multiple Choice

The book value of a firm is:

• A) equivalent to the firm's market value provided that the firm has some fixed assets.
• B) based on historical cost.
• C) generally greater than the market value when fixed assets are included.
• D) more of a financial than an accounting valuation.
• E) adjusted to the market value whenever the market value exceeds the stated book value.

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Definitions:

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