Which of the following methods is commonly used to establish a ...

[jeatrice]

Which of the following methods is commonly used to establish a floor value for the company?
 
  A) dividend payout method
  B) capitalization of earnings method
  C) net asset value method
  D) guideline transaction method

Question 2

Failure to record the adjusting entry for accrued wages results in the current year's net income being overstated.
  Indicate whether the statement is true or false

[Perkypinki]

Answer to Question 1

C
Explanation: C) The NAV method is a logical selection when engaged to value a nonoperating company or a company pending liquidation. Its most common use, however, is to establish a floor value for a company.

Answer to Question 2

T

[jeatrice]

Wow, this really help

[nguyenhoanhat]

Thanks for the timely response, appreciate it