________ value represents the amount of cash likely to be received by owners of an asset, assuming that pressure exists that will require the sales transaction to be completed quickly.

Question

Quizplus · Accepted Answer

Liquidation value represents the cash value that can be realized by selling an asset quickly, as opposed to its book value (which is what the company paid for it) or market value (which is what it could sell for under normal circumstances). This value is often used to determine the minimum value of an asset, as it assumes a worst-case scenario where the owner must sell quickly, usually due to financial distress.

________ Value Represents the Amount of Cash Likely to Be