Accountancy, asked by aamnamemon95, 6 months ago

Companies usually record their assets on book values, and define profitability and capitalization on market value. A general rise in stock price of a company can increase overall market value of company. Whereas, assets are subjected to depreciate at regular interval which actually decrease market value of total assets. In such cases companies usually see mismatch between asset and claim side of balance sheets. How companies fill this game? b. Why market value is preferred over book value for precreation of financial statements. c. What is the concept of Intrinsic value (explain with example)

Answers

Answered by sudipsarkar62
0

Explanation:

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