What Is the Major Reason GAAP Usually Does Not Use

question 75

Multiple Choice

What is the major reason GAAP usually does not use liquidation values to measure assets?

• A) It is not possible to determine what these values would be.
• B) GAAP typically assumes companies are going concerns.
• C) GAAP has a conservatism bias.
• D) These would cause companies to pay too much in taxes.

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