Which of the following accounting measures indicates the amount of stockholder funds used to finance a firm?
A) Book value
B) Actual rate of return
C) Net profit margin
D) Earnings per share (EPS)
E) Price/earnings (P/E) ratio

Question

Quizplus · Accepted Answer

Book value is the total value of a company's assets that shareholders would theoretically receive if the company were liquidated, after all debts and liabilities are paid off. This indicates the amount of stockholder funds used to finance a firm.

Which of the Following Accounting Measures Indicates the Amount of Stockholder