Which of the factors listed below contribute to the market value of a going concern? intangible assets market value of assets value of future investments extra earning power past share price

Question

Business

Travis Rice

29 October, 13:53

Which of the factors listed below contribute to the market value of a going concern? intangible assets market value of assets value of future investments extra earning power past share price

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Answers (1)

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Rocco Lewis · Answer 1

intangible assets

market value of assets

extra earning power

Explanation:

As an accounting principle, going concern value means the value of a business or its assets considering that the business will continue to operate in the reasonable future. This is the opposite to the value assigned to assets or businesses that are being discarded or liquidated.

When you are trying to valuate a company, you have to consider the fair market value of its assets, its intangible assets, and its earning power (its ability to make higher than average profits).

The past share price is not useful in determining the present of the company and the value of future investments cannot be included until the investments are carried out.