Question 3 Complete Which one of the following statements concerning market and

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Question 3 Complete Which one of the following statements concerning market and book values is correct? 0.00out Select one: of 1.00 O a. The market value of accounts receivable is generally higher than the book value of those ? Flag question receivables. O b. The market value tends to provide a better guide to the actual worth of an asset than does the book value. O c. The market value of fixed assets will always exceed the book value of those assets. O d. Book values represent the amount of cash that will be received if an asset is sold e. The current book value of equipment purchased last year is equal to the initial cost of the equipment. Question 4 Complete Mark 1.00 out of 1.00 An increase in which one of the following will increase net income? Select one: O a. Fixed costs O b. Depreciation O c. Marginal tax rate o d. Revenue Flag question e. Dividends

Explanation / Answer

3)

Answer is b, the market value tends to provide a better guide to the actual worth of the asset than the book value.

The reason is an asset supposed it is purchased 5 years back at $100, and still the book value is $100 but due to change in technology new products came in market and the market value of this old asset is just $40 in which this asset can be sold today or the price in which we can purchase the same asset today, so we can market value provide a better guide to the actual worth of the asset.

4) Answer is d. Revenue

An increase in revenue will lead to increase in net income.

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