The ________ method establishes the value of a company by computing the book value of its net worth, or owner's equity.
A)earnings
B)market
C)balance sheet
D)multiples

Question

Quizplus · Accepted Answer

The balance sheet method calculates the value of a company by using the book value of its net worth, which can be found in the balance sheet. This method does not take into account the company's potential future earnings or market conditions like the market method or multiples method do.

The ________ Method Establishes the Value of a Company by Computing