« previous next »

Author Question: Which of the following methods is used under the income approach of business valuation? A) net ... (Read 37 times)

khang

  • Hero Member
  • *****
  • Posts: 569
on: Jul 6, 2018
Which of the following methods is used under the income approach of business valuation?
 
  A) net asset value method
  B) capitalization of earnings method
  C) dividend payout method
  D) guideline transaction method

Question 2

Explain the matching principle and provide two examples of how it is applied in accounting records.


Kjones0604

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jul 6, 2018
Answer to Question 1

B
Explanation: B) The most common method under the income approach is the capitalization of earnings (COE) method.

Answer to Question 2

The matching principle requires that recorded expenses match up with revenues for the same period of time. It is important to record expenses with the revenues they earn to produce an accurate net income or loss. Examples include adjusting for insurance, depreciation, and wages.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Common bandaging methods Common bandaging methods
Vial Washing System - Risk Based Approach Vial Washing System - Risk Based Approach
How the Distribution of Education Affects the Distribution of Income How the Distribution of Education Affects the Distribution of Income
Introduction to Behavioral Research Methods, 6/E Introduction to Behavioral Research Methods, 6/E
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Business question Business question
Video: Mendel's Principles of Inheritance (Father of Genetics)

For a complete list of videos, visit our video library