One of the Methods for Computing a Company's Valuation Is

question 18

True/False

One of the methods for computing a company's valuation is called the market-based technique. This means to look at a company as assets minus liabilities.

---

Definitions:

Customer Account

An account held by a business that details the transactions and financial relationship between the business and a specific customer.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible debts.

Bad Debts Expense

Expenses linked to accounts receivable that a firm anticipates will not be collected.

Allowance Method

An accounting technique used to account for bad debts, which estimates uncollectible accounts receivable and creates a provision for them.