A Bank Has Book Value of Assets Equal to $800

question 8

Multiple Choice

A bank has book value of assets equal to $800 million and market value of assets equal to $1,100 million. The bank has book value of liabilities of $700 million and market value of liabilities equal to $850 million. The bank's market-to-book ratio is

• A) 2.5.
• B) 2.0.
• C) 1.5.
• D) 1.0.
• E) 0.67. (1,100 - 850)/(800 - 700) = 2.5

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Definitions:

Production Process

The sequence of operations or activities involved in the manufacture or production of goods or services.

Job-order Costing System

A method of product costing that tracks expenses for individual jobs or orders, allowing for detailed analysis of profitability on a per-job basis.

Work in Process

Inventory that is in the production process but is not yet completed or ready for sale.

Finished Goods

Merchandise that has undergone the entire manufacturing process and is prepared for sale to buyers.