The Direct Approach and the Indirect Approach ________; Therefore,businesspeople ________

question 37

Multiple Choice

The direct approach and the indirect approach ________; therefore,businesspeople ________.

• A)are unrelated; use them randomly
• B)are both inadequate; never use them
• C)both have merit; often combine them
• D)both have merit; never combine them
• E)are both unique; never combine them

---

Definitions:

Depreciable Cost

The cost of a plant asset less its salvage value.

Remaining Useful Life

The expected period that an asset is anticipated to be functional and economically viable for use in operations.

Book Value

The value of a company's asset as it appears on the balance sheet, calculated by subtracting the asset's accumulated depreciation from its cost.

Fair Market Value

The price at which an asset would sell in the market under conditions of fair competition and sufficient information.