Question

Market values: Group of answer choices reflect expected selling prices given the current economic situation. are affected by the accounting methods selected. are equal to the initial cost minus the depreciation to date. either remain constant or increase over time. are equal to the greater of the initial cost or the current expected sales value.

Answer 1

Market values:  reflect expected selling prices given the current economic situation.

What is market value?

Market value is the price buyers are willing to pay for an asset in the marketplace. In the case of publicly-traded assets or entities, it is also known as market capitalization and is calculated by multiplying the current price by the number of outstanding units.

There are a few components that go into calculating the market value of some assets such as businesses and with real estate, it involves a lot more than knowing about share prices. The business market value determination can also take components such as the value of intangibles and the future value of related assets into consideration.

Market value is more than a price but denotes the true underlying and not only the perceived value.

Thus , the correct answer is that Market values is  reflect expected selling prices given the current economic situation.

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