Which of the Following Is Not a Method to Determine

question 2

Multiple Choice

Which of the following is not a method to determine the value of a business?

• A) Worth of stockholders' equity
• B) Asset valuation
• C) Earnings valuation
• D) Cash flow valuation
• E) Sentimental valuation

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Definitions:

Salvage Value

The predicted value that an asset retains at the end of its service period.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a fixed asset evenly over its useful life, assuming a constant rate of depreciation each year.

Journal Entry

A record in accounting that notes every transaction, detailing the accounts affected and the amounts charged or credited.

Equipment Disposal

The process of getting rid of fixed assets such as machinery or equipment, typically due to obsolescence, replacement, or sale.