Which of the following valuation methods reflects current values?
A) acquisition cost
B) present value of cash flows using historical interest rates
C) net realizable value
D) adjusted acquisition cost

Question

Quizplus · Accepted Answer

Net realizable value reflects the current value of an asset or liability, as it takes into account any expected costs or losses associated with selling the asset or settling the liability. The other valuation methods listed (acquisition cost, present value of cash flows using historical interest rates, and adjusted acquisition cost) are all based on past transactions or projections, and do not necessarily reflect current market conditions.

Which of the Following Valuation Methods Reflects Current Values