Which of the Following Statements Is True of Replacement Cost

question 47

Multiple Choice

Which of the following statements is true of replacement cost approach?

• A) Replacement cost is an income-based valuation approach.
• B) This approach should include only tangible assets, whether they are actually included on the accounting balance sheet or not.
• 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 the whole of assets within a business when they are being insured.

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