The relevant measure of value of the assets of a company that is going out of business is its:

Question

Quizplus · Accepted Answer

The liquidation value is the relevant measure of value for a company that is going out of business because it represents the amount of money that the company's assets can realistically generate if sold quickly, at a discount, in order to pay off creditors and other obligations. Historical cost, recorded value, and book value are generally not useful measures in this context because they do not reflect the current market value or realizable value of the company's assets.

The Relevant Measure of Value of the Assets of a Company