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Author Question: Which of the following methods is commonly used to establish a floor value for the company? A) ... (Read 152 times)

jeatrice

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on: Jul 6, 2018
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


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Perkypinki

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Reply #1 on: Jul 6, 2018
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

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Reply 2 on: Jul 6, 2018
YES! Correct, THANKS for helping me on my review

mohan

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Reply 3 on: Yesterday
Excellent

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