The present worth of a property's future benefits is most important to what approach to value?
A. Income approach
B. Cost approach
C. Market data approach
D. Sales comparison approach
Answer: A. Income approach
Explanation: The income approach (capitalization approach) bases the present market value of a property on the future benefits of ownership.
You might also like to view...
What accounting is made for professional fees incurred during a bankruptcy reorganization?
A. They must be expensed immediately. B. They must be capitalized and written off over 180 months or less. C. They must be capitalized until the company emerges from the reorganization. D. They are either expensed or capitalized, depending on the nature of the expenditure.
Why is it necessary for firms to execute the steps of the order-to-payment cycle quickly and accurately?
What will be an ideal response?