Which of the Following Is True of the Net Asset

question 30

Multiple Choice

Which of the following is true of the net asset method?

• A) It requires the forensic accountant to adjust the company's balance sheet from book value to fair market value.
• B) It determines a company's value as the difference between the book value of its assets and the fair market value of its liabilities.
• C) It commonly requires the forensic accountant to use his or her judgment to arrive at the fair market value assessments.
• D) It involves the development of a proxy benefit and the capitalization of this benefit to provide an indicated business value.

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