Tag: liabilities

Liabilities and Assets

Liabilities and Assets

Fair market value which is a reasonable price that favors the demands of sellers and buyers manipulates market activities that are reflected in financial reports. In today’s business practice the fair market value is usually detected by procrastinating the expected value of assets and liabilities in the financial reports thus creating an estimated impression and financial position of business enterprises. Assets are resources that have economic value and are owned by individuals and business organizations. Liabilities on the other hand can be perceived as legal obligations that mandate individuals and business enterprises to settle their debts (Thomsett, 2006).

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