Which of the Following Is True About Current Cost Method

question 15

Multiple Choice

Which of the following is true about current cost method and market value method?

• A) They are used by the BEA to place current values on foreign indirect investments.
• B) These methods lead to the same valuations.
• C) Based on the current cost method, the BEA's 2009 estimate of U.S. net foreign wealth was $2,737.86 billion.
• D) The current cost method is preferred by the BEA.
• E) Foreign direct investments of the U.S. are valued at their original purchase price.

---

Definitions:

Fast-growth Firms

Companies that experience rapid expansion in terms of revenue, profitability, or market share over a short period.

Viable Opportunities

Opportunities that present a realistic and achievable path for growth, development, or profit for a business or individual.

Bankruptcy Prospect

The potential or likelihood of a person or entity being declared legally unable to pay their debts.

Bargaining

The process of negotiating the terms of a contract or agreement between parties with different objectives.