Which of the Following Appraisal Methods Is NOT Considered an Income

question 17

Multiple Choice

Which of the following appraisal methods is NOT considered an income approach?

• A) Capitalization rate
• B) Discounted present value
• C) Factor discounting rates
• D) Gross income multiplier

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Definitions:

Cost of Goods Sold

Direct expenditures associated with the manufacture of products sold by a firm, covering materials and workforce.

Journal Entries

The records of financial transactions in the double-entry bookkeeping system, each of which must have a debit and a credit.

Purchase and Payment

Purchase and payment refer to the process of acquiring goods or services and subsequently settling the obligation to pay for these goods or services.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial position.