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masya89 [10]
1 year ago
8

In determining the fair value of an asset or liability, would the fair value of the asset or the fair value of the liability be

determined using an entry price or an exit price?
Business
1 answer:
padilas [110]1 year ago
5 0

In determining the fair value of the asset or liability the exit price should be used. A fair price means the price that the asset or liability would get when sold in the market. So, the pair price will be determined by calculating the market price of such goods or liabilities or at what rate these goods or liabilities will be sold in the market.

The entry price would not be the correct price as the asset or liability may have been bought by the company many years ago. So based on this, the price of these assets would have increased as in the case. Sometimes the prices of these assets would have also decreased. The same reason is applicable to liabilities also.

This is known as the appreciation and depreciation of assets and liabilities. So to remove the effect of this the fair value will be based only on the exit price.

1. Learn more about fair value here:

brainly.com/question/14294197

2. Learn more about market price here:

brainly.com/question/15866211

#SPJ4

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Answer:

The correct answer is innovative.

Explanation:

In business terms, innovation is something that is not often seen, since many for fear of risk and investment do not dare to generate new things. The comfort of continuing with what is already established is the enemy of innovation. But this attitude of facing business also has complications, since the lack of innovation and risk can end a company.

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3 years ago
Acme Corporation has identified several new market opportunities but has limited funds to invest and therefore cannot pursue the
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Answer:

Option A Planning

Explanation:

The company is focusing on planning which tells about the pros and cons of the investment opportunity. This means planning tells about what issues the company would face after assessing the market research and then the company will form an opinion whether or not the company must invest. This process enables to choose the best option among a number of opportunities due to limiting factors (limited amount of money in this case) which limits the company to invest in coming future.

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Apple anticipates it will sell 100,000 units in the coming year. It is considering investing in a new machine that will increase
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Incomplete question. However, it would be inferred you want to know the requirements to calculate net income.

<u><em>Explanation</em></u>:

Remember, net income is total revenue minus total cost. Since Apple anticipates selling 100,000 units, if we assume the fixed cost to be $2,400 and the variable cost $34, and selling price unit is $150.

  • Total cost= 2400+ (34*100,000)= 3,400,000
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The Net income is therefore $11,600,000.

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3 years ago
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Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

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Answer:

Net decrease in prepaid expenses of $30,000 will be added to the net income in adjustments to net income because it will be considered that working capital (inventory or any other expense) has been generated by the operations.

Net decrease in Accounts payable of $20,000 will be deducted from net income in adjustments to net income because decrease in accounts payable means that cash has been paid to the outstanding payables.

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So, net income will be increased by $10,000 as net effect of the above adjustments.

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