When Using the Gross Income Multiplier Approach to Appraisal, Potential

question 37

True/False

When using the gross income multiplier approach to appraisal, potential gross income is preferred to effective gross income.

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Definitions:

Continuing Operations

The segments or units of a business that are expected to continue operations into the foreseeable future, as opposed to those segments that are being discontinued or sold.

Comparative Financial Statements

Financial statements that provide a comparison of a company's financial performance and position over multiple periods.

Percentage Analysis

A financial analysis technique that expresses each item in a financial statement as a percentage of a base amount to identify trends and make comparisons.

Vertical Analysis

A method of financial statement analysis in which each entry for the various categories is represented as a percentage of a base figure.