Which of the Following Information Is Required to Compute SVA

question 12

Multiple Choice

Which of the following information is required to compute SVA (shareholder value added) ?
i.PV of cash flows from operations for a certain time period
Ii Residual value of the business
Iii EVA

• A) i and ii
• B) i and iii
• C) i,ii and iii
• D) i

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Definitions:

Regulation S-X

Rules and regulations set by the Securities and Exchange Commission (SEC) that dictate the form, content, and requirements of financial statements submitted by public companies in the United States.

Replacement Cost

The current cost of replacing an asset with a new one of the same kind and quality at current prices.

LIFO-to-FIFO Adjustment

A recalculation process that converts inventory valuation from the Last-In-First-Out (LIFO) method to the First-In-First-Out (FIFO) method, affecting cost of goods sold and inventory value.

Inventory

The total amount of goods and materials held by a company that are available for sale or production.