Which of the following statements is correct?
I The book value of a corporation can be calculated from the balance sheet.
II The market value of a corporation can be calculated from the balance sheet.
A)I
B)II
C)I and II
D)Neither statement is correct.
E)There is not enough information to determine if either statement is correct.

Question

Quizplus · Accepted Answer

The book value of a corporation can be calculated from the balance sheet (market value cannot).
Key Takeaway: Stockholder's equity on the balance sheet can be used to calculate book value for a corporation. Market value must have additional information provided; it cannot be determined using the balance sheet.

Which of the Following Statements Is Correct