Business, 21.04.2020 00:00, marisolishwerd2265

A company owns a financial asset that is actively traded on two different exchanges (market A and market B). There is no principal market for the financial asset. The information on the two exchanges is as follows
Quoted price of asset - Transaction costs
Market A: $1,000 - $ 75
Market B: 1,050 - 150
What is the fair value of the financial asset?
A. $ 900
B. $ 925
C. $1,000
D. $1,050

Answers: 1

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answered: 13236

C. $1,000

Explanation:

The transaction is believed to have happened in the principal market for the liability or asset. When there is no present market like that, it is believed to happen market that is in more advantage. The market that is more advantage is the market in which the certain reporting entity can utilize the amount they received for selling the asset or minimize the amount paid for transferring the liability, after considering transportation and transaction and costs. The fair value is the price in that market with no adjustment for transaction costs. The entity will be able to receives $925 in only one condition, that is, if the asset is sold in Market X, but only $900 in Market Y. Therefore, Market X is the has more advantage, making the the fair value is $1,000. As our answer

answered: Guest

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answered: Guest

the answer is risk management planning

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A company owns a financial asset that is actively traded on two different exchanges (market A and ma...