19: Equity Valuation Flashcards
1
Q
Going concern assumes:
A
the company will continue operations
2
Q
Liquidation
vs
Orderly liquidation
A
Liquidation: forced/fire sale
Orderly: voluntarily winding down, gradually selling off assets
3
Q
Fair Market Value is the agreeded upon value for an asset or liability, between:
A
a willing buyer & willing seller, neither under any compulsion to act
4
Q
Intrinsic value is primarily used by:
A
analysts valuing public equities
5
Q
Investment represents the value of an asset to:
A
a particular buyer,
depends on the buyer’s needs
used with Synergies & Acquisitions
6
Q
Fair value is used for:
A
Impairement testing
7
Q
Capitalizing is deferring expenses, and is ____ accounting choice
A
Aggressive, therefore weakening quality of reporting
