Which one of the following is included in a firm's market value but yet is excluded from the firm's accounting value?
A)real estate investment
B)good reputation of the company
C)equipment owned by the firm
D)money due from a customer
E)an item held by the firm for future sale

Question

Quizplus · Accepted Answer

Good reputation of the company is included in the firm's market value, but it is not recorded in the firm's accounting value as it is an intangible asset that cannot be quantified or measured accurately. Real estate investment, equipment owned by the firm, money due from a customer, and an item held by the firm for future sale are all assets that are recorded in the firm's accounting value.

Which One of the Following Is Included in a Firm's