20-83 Which of the Following Statements Is True

question 65

Multiple Choice

20-83 Which of the following statements is true?

• A)The book value of equity always equals the market value of equity.
• B)The book value of equity always equals the market value of equity minus surplus value.
• C)The book value of equity equals par value plus surplus value plus retained earnings plus the loan loss reserve.
• D)The book value of equity equals par value plus surplus value plus the loan loss reserve.
• E)The book value of equity equals the market value of equity plus par value plus surplus value plus retained earnings.

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Definitions:

Quality

A measure of how good or suitable something is in comparison to similar items or services.

Seigniorage

Seigniorage is the profit made by a government by issuing currency, especially the difference between the face value of coins and their production costs.

Medium Of Exchange

An intermediary instrument, such as money, used to facilitate buying and selling goods and services.

Money

A medium of exchange that facilitates trade, serves as a unit of account, a store of value, and sometimes, a standard of deferred payment.