Vidyalelo
Commerce · Q58

Financial Management

Graduate and Post Graduate · Commerce · question 58

Q58

Net asset value takes into account____________.

A.
both realized and unrealized capital gains
Answer
B.
only realized capital gains
C.
only unrealized capital gains
D.
neither realized nor unrealized capital gains.

Answer: Option A

Solution

Answer: Option A
Solution:
Net asset value takes into account both realized and unrealized capital gains. The net asset value (NAV) represents the net value of an entity and is calculated as the total value of the entity’s assets minus the total value of its liabilities.