If you had to decide whether or not to lend money to a company, would you use the market value of its assets or the book value? Why?(A) Market value; it is the only method consistent with GAAP.(B) Market value; it tells you how much the company could sell the assets for if it has to re-pay the debt.(C) Book value; it tell you how much money they spent on assets in the past.(D) Either; they are usually the same.
If you had to decide whether or not to lend money to a company, would you use the marketvalue of its assets or the book value? Why? (A) Market value; it is the only method consistent with GAAP….
