The Relevant Measure of the Value of the Assets of a Company

question 56

Multiple Choice

The relevant measure of the value of the assets of a company that is going out of business is the:

• A)book value.
• B)current market value.
• C)historical cost.
• D)recorded value.

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Definitions:

Cost of Goods Sold

The specific costs incurred from the production of goods a business sells, including labor and materials.

Accounts Receivable

Outstanding payments due to a business from its customers for delivered or utilized services or products.

Certified Management Accountant

A professional certification for accountants and financial professionals in strategic management and financial accounting.

Certified Public Accountant

A certified status awarded to accountants who successfully complete a licensing exam and fulfill additional criteria set by the state.