Which of the Following Statements About Asset Valuation Methods Is

question 59

Multiple Choice

Which of the following statements about asset valuation methods is false?

• A)Estimates do not consider the value of an ongoing firm over the value of its identifiable assets.
• B)They are based on the assumption that a business is worth the value of its assets minus the value of any liabilities.
• C)It is very difficult and time consuming to separately identify and estimate the values of all the assets of a business.
• D)The application of asset valuation methods to business valuation is similar to having an annuity.

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Definitions:

Subsidy

A financial contribution granted by the government to reduce the production costs and encourage the supply of certain goods or services.

Quantity Tax

A tax levied on a specific quantity of a good or service, as opposed to its value, affecting the supply and potentially the price.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity supplied.

Tax Rate

The percentage at which an individual or entity is taxed on their income or the value of goods and services.