Which of the Following Refers to Income Capitalization

question 32

Multiple Choice

Which of the following refers to income capitalization?

• A) Regular and systematic reduction in income that transfers asset value to expense over time.
• B) Dividing projected net income excluding depreciation,interest,and owner draws,by the best return that you could expect to obtain in other investments.
• C) Multiplying your estimate of future earnings by the net income to equity ratio.
• D) The amount of profit earned by a business before calculating the amount of income tax owed.

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Definitions:

100 Units

A quantity measure often used in medical dosing or measurement, the specific nature of which depends on the context, such as units of insulin.

Deka-

Prefix used in the metric system denoting a factor of ten, represented symbolically as "da".

Deka-

A metric prefix denoting a factor of ten (10), used in units of measurement to indicate ten times the base unit.