The _____ of an asset as defined in U.S.GAAP is an opportunity cost in the sense that it reflects an amount that the firm could receive if it sold the asset today.It is the amount the firm forgoes by not selling the asset.In U.S.GAAP, it reflects a market participant perspective, so that the intentions of managers regarding how they plan to use the asset do not determine the measurement.
A)Current Replacement Cost
B)Net Realizable Value
C)Fair Value
D)Present Value of Future Net Cash Flows
E)Acquisition cost

Question

Quizplus · Accepted Answer

The definition provided clearly matches the concept of Fair Value, which reflects the opportunity cost of selling an asset in the current market. Other options, such as Current Replacement Cost and Net Realizable Value, are also used to value assets in different contexts, but they do not capture the same concept of market participant expectation. The Present Value of Future Net Cash Flows is a useful tool for estimating the intrinsic value of an asset, but it relies on assumptions about future performance and does not reflect the current market price. Acquisition cost is simply the amount paid to acquire an asset and does not reflect changes in market value over time.

The _____ of an Asset as Defined in U