Author Question: Which of the following is a premise of value that is applied to business valuations? A) going ... (Read 61 times)

iveyjurea · **on:** Jul 6, 2018

Which of the following is a premise of value that is applied to business valuations?

A) going concern
B) materiality
C) substance over form
D) neutrality

Question 2

Foster Company bought equipment on January 3 of this year for 10,000 . At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of 1,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is
a. 1,111.
b. 1,222.
c. 1,000.
d. 9,000.
e. 2,000.

chinwesucks · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

A
Explanation: A) Two premises of value apply to most business valuations: going concern or liquidation.

Answer to Question 2

C