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irga5000 [103]
3 years ago
9

20. Which of the following is correct? a) A company’s book value reflects the company’s history of equity investment and retaine

d earnings; a company’s market value reflects investors’ view of the company’s future earnings prospects. b) A company’s market value reflects the company’s history of equity investment and retained earnings; a company’s book value reflects investors’ view of the company’s future earnings prospects. c) A company’s book value and market value both reflect the company’s history of equity investment and retained earnings d) A company’s market value and book value both reflect investors’ view of the company’s future earnings prospects.
Business
2 answers:
diamong [38]3 years ago
7 0

Answer:

a. A company's book value reflects the company's history of equity investment and retained earnings; a company's market value reflects investor's view of the company's future earning prospects.

Explanation:

The book value of a company is the residual equity and retained earnings after all liabilities paid. Market value is the view of investor's about the company and is what the company would be worth if it were to be sold.

Colt1911 [192]3 years ago
4 0

Answer:

The correct answer is a) A company’s book value reflects the company’s history of equity investment and retained earnings; a company’s market value reflects investors’ view of the company’s future earnings prospects.

Explanation:

Book value is based on the historical cost, which arises as a result of the companies past financial and strategic decisions. Also, all the transactions the company had undergone affects this value as well.

The market value however, depends on how the investor see the company in the future. Companies that have high potential or an expected higher growth have the most investor confidence and because of that, better valuations.

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Type the correct answer in the box. Spell all words correctly.
Alexxandr [17]

Answer: Type the correct answer in the box. Spell all words correctly. Which general area of specialization are you in if you are managing the accounting.

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7 0
1 year ago
In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazine
rodikova [14]

Answer:

$2.5

Explanation:

Given:

Number of sandwiches in basket = 20

Number of magazines in basket = 30

cost of sandwiches in 2006 = $4

Cost of magazines in 2006 = $2

cost of sandwiches in 2007 = $5

Consumer price index in 2007 = 125

Now,

Consumer price index = \frac{\sum(p_1q0)}{\sum(p_0q0)}\times100

or

125 = \frac{20\times\$5+30\times X}{20\times\$4+30\times\$2}\times100

here,

X is the price of magazines in 2007

thus,

125 = \frac{\$100+30\times X}{$80+$60}\times100

or

1.25 × ($80 + $60 ) = $100 + 30X

or

30X = $175 - $100

or

X = $2.5

Hence,

The price of magazines in 2007 was $2.5

4 0
3 years ago
Willetta Company purchases inventory for $18,000 with terms 2/10, n/30. It then returns $2,800 of the inventory purchased to the
kvv77 [185]

Answer:

The amount of discount that will be taken is $300.4

Explanation:

The amount of discount that will be taken will be on the value of accounts payable that is eligible for pay after adjustments.

The accounts receivable balance after adjusting for purchases returns and defective goods is:

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The accounts payable amount that is eligible for discount is:

Discount received = 15020 * 0.02 = $300.4

4 0
3 years ago
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Lapatulllka [165]
Medicare. I believe that is the answer
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3 years ago
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