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

Question

Quizplus · Accepted Answer

The current fair market value is the most relevant measure of the value of the assets of a company going out of business because it reflects what the assets would actually sell for in the current market. Book value, historical cost, and recorded value may not accurately reflect the true value of the assets and can be outdated.

The Relevant Measure of the Value of the Assets of a Company