Valuation is the process of determining what an asset is currently worth.
B.
An asset’s value is the present value of the future benefits. For example, the current value of equipment is the present value of the expected cash flows it will generate in the future.
C.
If a company has shares of stock owned by the general public, the value of the company is the total number of shares times the market value of a share.
D.
If it’s a company that does not have shares owned by the general public, then the value of the company exactly equals the value of the firm’s equity.
【单选题】Which of the following statements best describes how management selects an inventory valuation method?
A.
If a company generally sells its oldest inventory first, it must use the FIFO inventory valuation method.
B.
If a company generally sells its oldest inventory first, it must use the LIFO inventory valuation method.
C.
If a company generally sells its newest inventory first, it must use the FIFO inventory valuation method.
D.
If a company sometimes sells its newest inventory and sometimes sells its oldest inventory, then it must use the weighted average inventory valuation method.
E.
A company may choose any inventory valuation method even if it is contradictory to the physical flow of inventory.