BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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inventory records.
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asset records.
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records of accounts.
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tax records.
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Detailed explanation-1: -In its most basic form, the asset-based value is equivalent to the company’s book value or shareholders’ equity. The calculation is generated by subtracting liabilities from assets. Often, the value of assets minus liabilities differs from the value reported on the balance sheet due to timing and other factors.
Detailed explanation-2: -Carrying value is typically determined by taking the original cost of the asset, less depreciation.
Detailed explanation-3: -Assets are the resources owned by a business. They are the opposite of liabilities, which are what the business owes. Business assets can include property, equipment, cash, accounts receivable, inventory and raw materials – as well as intangibles such as trademarks, patents, royalties, and other intellectual property.
Detailed explanation-4: -Land, buildings, and equipment are reported on a company’s balance sheet at net book value, which is cost less any of that figure that has been assigned to expense. Over time, the expensed amount is maintained in a contra asset account known as accumulated depreciation.