Quiz – Value
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Why is a company’s book value less than its market value?
Why is a company’s book value less than its market value?
At a specific point in time, the balance sheet displays the financial position of a company.
Generally, a company’s market value is lower than its book value.
The balance of net receivables is the amount expected to be collected.
If the services obtained are likely to expire within the operating cycle or 12 months, whichever is longer, prepaid expenses are classified as current assets.
The classification of property, plant, and equipment assets consists of machinery, equipment, and inventory.
Current assets usually include intangible assets on the balance sheet.
Accrued salaries and wages displayed in the balance sheet represent the amount of salaries that employees have earned but not yet received.
The summary of significant accounting policies frequently reveals the criteria used to determine which items constitute cash equivalents.
Disclosure notes typically include payment conditions, interest rates, and other particulars of long-term liabilities.