If You Were Appraising a Church, Which Approach to Value

question 9

Multiple Choice

If you were appraising a church, which approach to value would be best to use?

• A)sales comparison approach
• B)cost approach
• C)income capitalization approach
• D)revenue multiplier

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Definitions:

Sales Revenue Approach

A method to recognize revenue based on the sales of goods or services, highlighting the importance of sales activities in generating income for the business.

Unadjusted Year End

The financial figures reported at the end of a fiscal year before any adjustments are made for accruals, deferrals, or other accounting entries.

Trial Balance

An accounting report that lists the balances of all ledgers accounts in order to verify that total debits equal total credits.

Factoring Arrangement Without Recourse

A financial transaction in which a business sells its receivables to a third party (a factor) at a discount, without the seller being responsible if the debtor fails to pay.