The relevant measure of value of the assets of a company that is going out of business is:
A)their current market value.
B)their book value.
C)their historical cost.
D)the higher of their historical cost or current market value.

Question

Quizplus · Accepted Answer

The relevant measure of value for the assets of a company going out of business is their current market value. This is because the current market value reflects what the assets could be sold for in the market at the present time, which is the most relevant information for a company that is liquidating its assets.

The Relevant Measure of Value of the Assets of a Company