special issues

Maneesh 02 May 2020 at 12:52 PM

Which one of the following best describes why the market value of a company may be significantly higher than the book value?
A) The company may still be using machinery which has been fully depreciated.
B) The current growth in revenue may be difficult to maintain in coming years.
C) The company may have recorded goodwill for an acquisition that has been unexpectedly difficult to merge with existing operations.
D) The company may have recorded in the current period revenues for sales which may be  returned in future periods.
Option A

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FACULTY 13 May 2020 at 01:48 PM

The company may still be using machinery which has been fully depreciated. (option A)

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