The relevant measure of the value of the assets of a company that is going out of business is the:
A)liquidating value.
B)inflation-adjusted book value.
C)historical cost.
D)carrying value.

Question

Quizplus · Accepted Answer

Liquidating value is the most relevant measure of the value of assets of a company that is going out of business. It represents the amount of money that can be realized if the assets are seized and sold to pay off the company's debts. Historical cost and carrying value may not reflect the current market value of the assets, while inflation-adjusted book value may not be relevant in a liquidation scenario.

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