Which of the Following Is a Reason Why a Company's

question 7

Multiple Choice

Which of the following is a reason why a company's market value of equity differs from its book value of equity?

• A) Shareholders are keenly aware of book values,but have little interest in market values.
• B) Accountants' charges for the cost of equity are often higher than they should be.
• C) Fair value accounting is becoming more widely used.
• D) Values of assets on the balance sheet typically reflect historical cost,adjusted for appropriate depreciation.

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Definitions:

Relay

Any of a number of devices that receives a signal and then effects an action. In vehicle electrical circuits, relays are used to allow a small current circuit to control a large current circuit such as in a starter relay. Also known as a pilot.

Transistor

A semiconductor device used to amplify or switch electronic signals and electrical power, fundamental in modern electronic circuits.

V-Ref

Reference voltage. ECU or ECM conditioned voltage (usually 5 volts DC) supplied to various sensors (such as thermistors, potentiometers) in truck electronic circuits. In most cases, a portion of the voltage is returned to indicate the status of sensor.