The estimated price that could be received for the sale of divisional assets is referred to as:
A) Gross book value (GBV), plus accumulated depreciation to date.
B) Gross book value (GBV).
C) Price-level adjusted cost.
D) Replacement cost.
E) Liquidation value.

Question

Quizplus · Accepted Answer

The estimated price that could be received for the sale of divisional assets is generally referred to as liquidation value. This represents the amount of money that a company expects to receive if it sells its assets in a liquidation scenario. The liquidation value is typically lower than the book value of the assets since it takes into account the fact that the assets may not be able to fetch their full value in the market. Therefore, option E is the correct answer.

The Estimated Price That Could Be Received for the Sale