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

question 63

Multiple Choice

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

• A)liquidating value.
• B)inflation-adjusted book value.
• C)historical cost.
• D)carrying value.

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Definitions:

Establishment Of Responsibility

An internal control principle focusing on assigning responsibility to specific employees to prevent fraud and errors.

Segregation Of Duties

An internal control measure that splits responsibilities among different people to reduce the risk of fraud and errors in the financial processes.

Credit Memorandum

A document issued by a supplier to a buyer, reducing the amount the buyer owes to the supplier, often due to a return or refund.

Internal Control Problems

Issues or weaknesses in a business's processes that can lead to inaccurate financial reporting, fraud, or operational inefficiency.