Which of the Following Statements Is True of the Calculation

question 14

Multiple Choice

Which of the following statements is true of the calculation of economic damages in a civil litigation?

• A) All future economic damages must be reduced to present value, which requires the application of a discount rate.
• B) Calculations of economic damages are often based on a set of foundational assumptions rather than facts.
• C) Interest on past economic damages is always calculated by a forensic accountant.
• D) Worklife expectancy is the period of time a person is expected to live past retirement.

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Definitions:

Output Market

The marketplace in which goods and services produced by businesses are sold or offered to end users or consumers.

U.S.GAAP

United States Generally Accepted Accounting Principles, a standard framework of accounting rules for financial reporting.

Long-lived Asset

An asset with a useful life longer than one year, typically including property, plant, and equipment, used in the operation of a company.

GAAP

The standard set of guidelines for financial accounting known as Generally Accepted Accounting Principles, used primarily within the United States and other jurisdictions.