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.

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Definitions:

Bill of Lading

A document issued by a carrier to acknowledge receipt of cargo for shipment, serving as a contract between the owner of the goods and the carrier.

Evidence of Title

Evidence of title is documentation or legal proof establishing one's right to ownership of property, usually in the form of a deed or title certificate.

Ownership

The legal right or title to control and use property, assets, or resources, including the responsibilities and benefits that come with it.

Sales Response Function

Relates the expense of the marketing effort to the marketing results obtained.