Which of the Following Is the Best Definition of an Asset

question 41

Multiple Choice

Which of the following is the best definition of an asset price according to the classical theory?

• A)It is equal to future value of expected asset income.
• B)It is equal to its future price.
• C)It is equal to present value of expected asset income.
• D)It is equal to present value of known asset income.

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Definitions:

Nonexchange Transactions

Transactions where an entity receives value without directly giving or promising equivalent value in exchange.

Reimbursement

Compensation paid to someone for out-of-pocket expenses they have incurred.

Internal Service Fund

A proprietary fund in governmental accounting used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis.

Central Data Processing

The handling and processing of data centrally for efficiency and control, typically within the IT department of an organization.