Ch. 20 - Valuations: Tangible and Intangible Assets

Question 1

Different terms for value:

Answer 1

1. value in use
2. highest and best value
3. liquidation value

Question 2

Value in use:

Answer 2

the value to an entity given is current use

Question 3

highest and best value:

Answer 3

The best use for an asset that is possible for a market participant

Question 4

liquidation value:

Answer 4

the net proceeds that would be received by an owner in a voluntary liquidation

Question 5

Different valuation approaches for tangible and intangible assets

Answer 5

1. replacement cost
2. income-based
3. market based