CVBL Finance Questions with Complete Correct Answers | Grade A+

Discounted cash flow Ans: The process of using time value of money skills and forecasting to value assets. income approach Ans: The method that adds all the income generated by the production of final goods and services to measure the gross domestic product. Asset Approach Ans: A general way of determining a value indication of a business, business ownership interest, or security using one or more methods based on the value of the assets net of liabilities. Market Approach Ans: a method of valuing property based on recent sales of similar properties capitalization of earnings formula 2 Ans: Revenue - fair market value of Owners management value.= Expected earnings x Multiple =practice value capitalization of earnings method Ans: Method based on capitalizing on the profit/earnings or cash flow generating abilities of the practice. (measures risk associated with ownership of specific practice. ROI profit Ans: total revenue minus total cost taxable income Ans: income on which tax must be paid; total income minus exemptions and deductions cash flow Ans: the total amount of money being transferred into and out of a business, especially as affecting liquidity. capital assets Ans: buildings and machines owned by a company accrued liability 3 Ans: A liability for which the business knows the amount owed but the bill has not been paid. Maslow's Hierarchy of Needs