The amount that an entity would need to receive to compensate it for the loss of an asset is known as:
A) value-in-use
B) carrying value
C) deprival value
D) value-in-exchange

Question

Quizplus · Accepted Answer

Deprival value is the amount that an entity would need to receive in order to compensate it for the loss of an asset. This takes into account the fact that the entity would no longer have the asset and the future benefits it would have provided. Value-in-use refers to the present value of future cash flows expected to be derived from an asset, while carrying value is the amount at which an asset is carried on the balance sheet. Value-in-exchange refers to the price that would be received to sell an asset in an arm's length transaction.

The Amount That an Entity Would Need to Receive to Compensate