A Method of Valuing a Business That Recognizes That a Buyer

question 12

True/False

A method of valuing a business that recognizes that a buyer is purchasing the future income (earning) potential is the earnings approach.

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Definitions:

Customer Payment

A financial transaction where a client settles the amount owed for a service or product provided by a company, completing the sale.

QuickBooks

An accounting software package developed and marketed by Intuit, used for small and medium-sized businesses.

Payment Method

The means or process by which a payment is made and received, which can include cash, checks, credit cards, or electronic transfers.

Audit Trail

A record that shows the chronological sequence of the documentation of financial transactions and changes in an accounting system.