_____ is an estimate of what an identical asset would cost to be acquired and readied for service.

Question

Quizplus · Accepted Answer

Replacement value is an estimation of the cost required to acquire and prepare an identical asset for use, assuming the asset has the same level of usefulness and functionality as the existing asset. It is often used in the context of insurance, as a way to determine the amount of coverage needed to replace a lost or damaged asset. Earnings multiple is a measure used to value a company, while book value is an accounting measure of an asset's value based on its historical cost. Net realizable value is the amount an asset can be sold for, minus any selling costs.

_____ Is an Estimate of What an Identical Asset Would