The Difference Between a Market Value Balance Sheet and a Book

question 76

Multiple Choice

The difference between a market value balance sheet and a book value balance sheet is that a market value balance sheet:

• A)places assets on the right hand side.
• B)places liabilities on the left hand side.
• C)does not equate the right hand with the left hand side.
• D)lists items in terms of market values, not historical costs.
• E)uses the market rate of return.

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Definitions:

Secondary Voltage

The output voltage of a transformer or another device that reduces or increases voltage from the primary voltage supplied to it.

Delta Secondary

A configuration for the secondary winding of a transformer where the ends of the coils are connected to form a triangle-like circuit, allowing it to supply both three-phase and single-phase load currents.

Center-Tapped Transformer

A transformer that has a wire connected to the electric midpoint of its winding. Generally, the secondary winding is tapped.

High Leg

A certain type of three-phase power connection that exhibits a higher voltage on one leg when measured to ground than on the other legs.