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.

---

Definitions:

Bioecological Approach

A theoretical model that emphasizes the importance of both biological and environmental factors in the development of human beings, highlighting the dynamic interactions between them.

Bronfenbrenner

A theorist best known for proposing the ecological systems theory, which describes how the social environments from immediate surroundings to broader societal levels influence human development.

Cross-Sectional

A research design that compares different population groups at a single point in time.

Research Design

is a structured approach used in scientific studies to ensure the validity and reliability of findings, often specifying the methods for collecting, analyzing, and interpreting data.