Potential sources of value rarely include factors not recorded on a firm's balance sheet.

Question

Quizplus · Accepted Answer

There are many potential sources of value that are not recorded on a firm's balance sheet, such as intellectual property, brand reputation, human capital, and customer relationships. These intangible assets can be just as valuable as physical assets, but are often difficult to quantify and include in financial statements.

Potential Sources of Value Rarely Include Factors Not Recorded on a Firm's