Identify all explanations for why a company's book value is less than its market value.

1. Management tends to be rosy with their estimates and judgments.

2. Many valuable resources of an entity are not recorded as assets on the balance sheet.

3. Many assets are measured at their historical costs instead of fair value or expected selling price.

4, Investors are greedy and optimistic about a company's growth opportunities.

Group of answer choices

2 & 3

3 & 4

1 & 4

1, 2, 3

Identify all false statements about intangible assets.

1. They lack physical substance but provide exclusive right to the owner.

2. Only purchased goodwill in a business combination may be recognized as an intangible asset.

3. Intangible assets include internal research & development of COVID-19 vaccine that has not been approved for use by the FDA.

4. Intangible assets are subject to depreciation.

5. Apple's logo is Apple's intangible asset.

6. Patent, copyright and advertisement are intangible assets.

Group of answer choices

3 & 6

3, 4, 6

4, 5, 6

1, 2, 5

Match each item on the right to where you will find the item on the left. Auditor's report [ Choose ] [ Choose ] Management's discussion and analysis Liquidity ratios and solvency ratios Segment information. Depreciation method for property, plant and equipment. Proxy statement Opinion on effectiveness of internal control. Selected quarterly results. Executive compensation and corporate governance. Summary of significant accounting policies Management's views on its operations, risks, capital resources and significant events