Which statement is incorrect? a. Book value per share is the claim of a shareholder in the net assets of the corporation for every share held in the corporation. b. If a corporation has 2 classes of shareholders, the book value per share should be computed for both preference shares and ordinary shares. c. Book value per share assumes that assets are realized at book values and liabilities are liquidated at book values. Total gains (losses) on realization of assets and liquidation of liabilities, if there are any, are assumed to sum up to zero. d. Excess over par refers to the amount of shareholders’ equity in excess of the total par value of the preference shares and ordinary shares issued by the corporation. e. none of the above
Which statement is incorrect?
a. Book value per share is the claim of a shareholder in the net assets of the corporation for every share held in the corporation.
b. If a corporation has 2 classes of shareholders, the book value per share should be computed for both
c. Book value per share assumes that assets are realized at book values and liabilities are liquidated at book values. Total gains (losses) on realization of assets and liquidation of liabilities, if there are any, are assumed to sum up to zero.
d. Excess over par refers to the amount of shareholders’ equity in excess of the total par value of the preference shares and ordinary shares issued by the corporation.
e. none of the above
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