Which One of the Following Statements Is NOT True

question 8

Multiple Choice

Which one of the following statements is NOT true?

• A) Replacement cost and adjusted book value are cost-based valuation approaches.
• B) The replacement cost approach involves restating the value of the individual assets in a business to reflect their fair market values.
• C) The replacement cost of a business is the cost of duplicating the assets of the business in their present form as of the valuation date.
• D) The replacement cost valuation approach is generally used to value individual assets within a business when they are being insured.

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Definitions:

Fibroblasts

Connective tissue cells that produce the fibers and the protein and carbohydrate complexes of the matrix of connective tissues.

Sweat Glands

Exocrine glands found in mammalian skin that secrete sweat, a fluid containing water and electrolytes, which helps regulate body temperature.

Cartilage

A tough, flexible connective tissue found in various parts of the body, including joints, rib cage, ear, and nose, providing support and reducing friction.

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's cell body.