Author Question: Which of the following methods is commonly used to establish a floor value for the company? A) ... (Read 143 times)

jeatrice · **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

Perkypinki · **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