Book value is the best measure of a direct property loss.

Question

Quizplus · Accepted Answer

Book value only refers to the value of an asset on a company's books or accounting records. It does not necessarily reflect the true value of the asset or the amount of loss in the event of damage or loss. Therefore, book value is not the best measure of a direct property loss. Other measures, such as replacement cost or fair market value, may be more accurate in determining the loss.

Book Value Is the Best Measure of a Direct Property