When a Company Wants to Place a Value on a Physical

question 24

Multiple Choice

When a company wants to place a value on a physical asset for its balance sheet,it must

• A) reduce the value by the amount the asset has depreciated.
• B) auction the asset off.
• C) ask its competitors what the asset is worth.
• D) price a new one.
• E) increase the value by the amount the asset has appreciated.

---

Definitions:

Regression Analysis

Regression analysis is a statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables.

Variable

An attribute or characteristic that can assume different values among subjects in a study or items in a data set, each potentially impacting outcomes.

Least Squares Estimates

Statistical estimates obtained by minimizing the sum of the squared differences between observed and predicted values in regression analysis.

Simple Linear Regression

A statistical method that models the linear relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.