Realization Is the Presumption That a Firm Will Remain in Operation

question 25

True/False

Realization is the presumption that a firm will remain in operation long enough to carry out its current plans, and in the normal course of its operations, realize changes in the fair values of its assets either by using those assets or selling them.

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Definitions:

Subscription Price

The price at which existing shareholders or subscribers can purchase new shares of a company during a rights offering before it is offered to the public.

Market Price

The present market rate for trading an asset or service.

Subscription Price

The fixed price at which existing shareholders can purchase additional shares of stock before it is offered to the public.