In Adjusting Base Year Income, an Appraiser Must Be Aware

question 116

True/False

In adjusting base year income, an appraiser must be aware of the implications of various accounting methods for value. During periods of inflation, businesses frequently use the last-in, first out method to value inventories. This approach results a reduction in the cost of sales and an increase in gross profits and taxable income.

---

Definitions:

Acetyl Group

A 2-carbon group derived from acetic acid (acetate).

FADH₂

A reduced form of flavin adenine dinucleotide, a redox-active coenzyme involved in cellular respiration.

Aerobic Respiration

A metabolic process that uses oxygen to convert glucose or other organic substrates into energy, carbon dioxide, and water.

Electron Transport Chain

A series of protein complexes located in the inner mitochondrial membrane that facilitate electron transfer and ATP production.