Income Is Equal to the Difference Between the Present Value

question 17

Multiple Choice

Income is equal to the difference between the present value of the net assets at the end of the period and their present value at the beginning of the period, excluding the effects of investments by owners and distributions to owners is the definition of which of the following current value concepts?

• A) Replacement cost
• B) Selling price
• C) Exit value
• D) Discounted present value

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Definitions:

Organize

refers to arranging or structuring people, resources, or tasks systematically to achieve specific goals or outcomes efficiently.

Selective Screening

Allows only a portion of available information to enter our perceptions.

Conscious Awareness

Pertains to being fully aware and mindful of one's immediate environment, thoughts, and feelings.

Law Of Effect

Law of effect states that behavior followed by pleasant consequences is likely to be repeated; behavior followed by unpleasant consequences is not.