Lisa has a list of the assets and their book values for a business she may purchase.She has hired an appraiser to estimate their true value.What valuation method is Lisa using?

Question

Quizplus · Accepted Answer

Lisa is using the asset-based valuation approach as she is comparing the book value of the assets to their estimated true value as determined by an appraiser. The modified-book-value approach would involve adjusting the book value for any differences in market value, the replacement-value approach would estimate the cost of replacing the assets, and the market-based valuation approach would look at the prices of similar assets on the market. None of these methods are indicated to be used in this scenario.

Lisa Has a List of the Assets and Their Book