Explain the Three Functions of Distributable Net Income (DNI)

question 13

Essay

Explain the three functions of distributable net income (DNI).

---

Definitions:

Concrete Slab

A large, thick, flat piece of concrete, used as a base for construction projects such as floors, roads, or foundations.

Acquisition Cost

Acquisition Cost refers to the total cost incurred to obtain an asset, including the purchase price and all associated expenses such as delivery and installation.

Self-Constructed Asset

A self-constructed asset is an asset that is built and created by a company using its own workforce and resources rather than purchasing it pre-made from another source.

Construction Period

The phase in which buildings or infrastructure projects are physically built, involving planning, design, and construction activities.