Which of the Following Would Be the Best Brief Definition

question 287

Multiple Choice

Which of the following would be the best brief definition of present value?

• A) assets minus liabilities incurred to acquire the assets
• B) benefits of an investment minus its costs
• C) the sum of all the past values of an asset
• D) the current value of the expected future returns on an asset

---

Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and various provinces and territories, as well as overseeing various social and economic benefit and incentive programs through taxation.

Income Tax Return

A document filed with the government that reports income, expenses, and other pertinent tax information.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, reflecting consumption, wear and tear, or obsolescence of the asset.

Units-of-Production Method

A depreciation method where the expense is based on the asset's usage, output, or units produced, rather than time.