Which of the following is true of the net asset method?
A) It requires the forensic accountant to adjust the company's balance sheet from book value to fair market value.
B) It determines a company's value as the difference between the book value of its assets and the fair market value of its liabilities.
C) It commonly requires the forensic accountant to use his or her judgment to arrive at the fair market value assessments.
D) It involves the development of a proxy benefit and the capitalization of this benefit to provide an indicated business value.
A
Explanation: A) The net asset method requires the forensic accountant to adjust the company's balance sheet from book value to fair market value.
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