Which of the Following Valuation Methods Reflects Current Values

question 2

Multiple Choice

Which of the following valuation methods reflects current values?

• A) acquisition cost
• B) present value of cash flows using historical interest rates
• C) net realizable value
• D) adjusted acquisition cost

---

Definitions:

Debtor

A party that owes money to another party.

Proceeds

Something that is exchanged for a debtor’s sold collateral.

Security Interest

A legal claim or lien on collateral that secures the repayment of a debt or obligation, giving the lender rights in the collateral.

Secured Party

The party that holds the interest in a secured property.