The accounting measure of a firm's equity value generated by applying accounting principles to asset and liability acquisitions is called ________.

Question

Quizplus · Accepted Answer

Book value is the accounting measure of a firm's equity value generated by applying accounting principles to asset and liability acquisitions. Market value is the current value of a company's equity based on the market price per share. Liquidation value is the estimated value of a firm's assets if they were sold off and liabilities were paid off. Tobin's q is a ratio that compares the market value of a firm's assets to the replacement cost of those assets.

The Accounting Measure of a Firm's Equity Value Generated by Applying