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PROBLEM 1: TRUE OR FALSE 1

Accounting

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PROBLEM 1: TRUE OR FALSE 1. Book value per share measures the amount each share would receive assuming the entity declares profit from the results of its operations during the period. 2. Book value per share is computed based on the fair value of an entity's net assets. 3. Book value per share is computed by dividing shareholders' equity by the outstanding shares. 4. The equity structure of an entity may affect the computation of an entity's book value per share. 5. For purposes of computing book value per preference share, all dividends in arrears are allocated if the preference shares are cumulative.