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    Valuation Methods

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    Are some valuation methods inherently wrong for some companies? Why or why not?

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    According to the Farm Financial Standards Council, the selection of appropriate valuation methods has been the subject of extensive debate over the last few years. In most cases, a balance sheet will be prepared utilizing a variety of valuation methods; the selection is normally based on the nature of the item and the relevance and reliability of the method of accounting for that item. Some common valuation methods are as follows:

    Historical Cost/Historical Proceeds Method. For an asset: the amount of cash, or its equivalent, paid to acquire the item, commonly adjusted ...

    Solution Summary

    Valuation Methods are emphasized.