Which of the Following Best Describes Why the Valuation Principle

question 77

Multiple Choice

Which of the following best describes why the Valuation Principle is a key concept in making financial decisions?

• A) It shows how to assign monetary value to intangibles such as good health and well-being.
• B) It allows fixed assets and liquid assets to be valued correctly.
• C) It gives a good indication of the net worth of a person, item, or company and can be used to estimate any changes in that net worth.
• D) It shows how to make the costs and benefits of a decision comparable so that we can weigh them properly.