Which of the following is the market-established worth of a product or a financial instrument?
A)Market value
B)Fair value
C)Cash flow
D)Investments
E)Book value

Question

Quizplus · Accepted Answer

Market value is the amount that a potential buyer is willing to pay for a product or a financial instrument in the market. It is based on the supply and demand factors and reflects the true worth of the item at a particular point in time. Fair value is determined based on the accounting principles and may not reflect the actual market scenario. Cash flow and investments are related to the financial operations of a company and do not determine the market worth of a product. Book value is the value of an asset according to the balance sheet of a company and may not be the same as its market value.

Which of the Following Is the Market-Established Worth of a Product