Which of the following best describes why the Valuation Principle is a key concept in making financial decisions（）
A. It shows how to assign monetary value to intangibles such as good health and well-being
B. It allows fixed assets and liquid assets to be valued correctly
C. It gives a good indication of the net worth of a person, item, or company and can be used to estimate any changes in that net worth
D. It shows how to make the costs and benefits of a decision comparable so that we can weigh them properly
An elderly relative offers to sell you their used 1958 Cadillac Eldorado for $52,000. You note that very similar cars are selling on the open market for $87,000. You don't care for classic cars an
A. $87,000, since the Cadillac could be sold for this price
B. $52,000, since the Cadillac could be bought for this price
C. $35,000, since this is the difference between purchase and resale price of the Cadillac
D. $35,000, since this is the value of the car that you really want to buy
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