The relevant measure of value of the assets of a company that is going out of business is its:
A) liquidation value
B) historical cost
C) carrying amount
D) recorded value

Question

Quizplus · Accepted Answer

When a company is going out of business, the most relevant measure of value for its assets is the liquidation value, which is the amount the assets can fetch in a forced sale. Historical cost, carrying amount and recorded value may not fully reflect the current market value of the assets, especially in a forced sale scenario.

The Relevant Measure of Value of the Assets of a Company