1. The main objective for adjusting the financial statements of a closely held company is:

a. To determine if the owner is taking unreasonable compensation

b. To adjust the financial statements of a business to more closely reflect its true economic financial position and results of operations on a historical and current basis

c. To adjust the financial statements to ensure the financial statements are in conformity with Generally Accepted Accounting Principles

d. To adjust the financial statements so there is consistency in the financial statements over the time period the valuator is analyzing

2. The cost to replace an asset under a particular fact situation is known as:

a. Fair market value

b. Fair value

c. Replacement cost

d. Strategic value