Which of the Following Is Not a Valuation Technique Prescribed

question 18

Multiple Choice

Which of the following is not a valuation technique prescribed by AASB 13 Fair Value Measurement?

• A)The balance sheet approach
• B)The income approach
• C)The cost approach
• D)The market approach

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows, taking into account a particular return rate.

Residual Value

Residual Value is the estimated value of an asset at the end of its useful life, often considered in depreciation calculations or when leasing assets.

Cash Inflows

The total amount of money received by a company during a given period from various sources, including operations, investment, and financing activities.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the total present value of its expected future cash flows minus the initial investment cost.