Market Values for Equity Are Calculated As

question 44

Multiple Choice

Market values for equity are calculated as:

• A)the sum of the value of equity and accumulated retained earnings as found on the balance sheet.
• B)the price per share multiplied by the number of shares outstanding.
• C)the price per share multiplied by the number of shares outstanding plus the accumulated retained earnings.
• D)the price per share multiplied by the number of shares outstanding minus the accumulated retained earnings.

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Definitions:

Gross Earnings

The total amount of money earned by an individual or organization before any deductions are made.

Contingent Liabilities

Contingent liabilities are potential liabilities that may occur depending on the outcome of a future event, and are recorded in the company's financial statements if probable and estimable.

Unearned Revenues

Liabilities representing payments received for goods or services that have not yet been delivered or performed.

Deferred Revenues

Income received by a company for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.