What Is the Most Common Valuation Method Used for Intangible

question 34

Multiple Choice

What is the most common valuation method used for intangible assets?

• A)Market-based
• B)Income-based
• C)Cost-based
• D)Amortized cost

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving insight into its financial position.

Statement of Cash Flows

A financial document that provides a summary of the amount of cash and cash equivalents entering and leaving a company, showing how the company raises and spends money.

Profit and Loss Statement

A financial document summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.

Income Statement

A financial document that reports a company’s revenues, expenses, and profits over a specific period.