Income is equal to the difference between the present value of the net assets at the end of the period and their present value at the beginning of the period, excluding the effects of investments by owners and distributions to owners is the definition of which of the following current value concepts?
A) Replacement cost
B) Selling price
C) Exit value
D) Discounted present value

Question

Income is equal to the difference between the present value of the net assets at the end of the period and their present value at the beginning of the period, excluding the effects of investments by owners and distributions to owners is the definition of which of the following current value concepts? 
A) Replacement cost
B) Selling price
C) Exit value
D) Discounted present value

Quizplus · Accepted Answer

The definition given perfectly matches with the concept of Discounted present value, where income is calculated by considering the present value at the end of the period minus the present value at the beginning of the period, excluding investments and distributions by the owners. Thus, option D is the correct choice.

Income Is Equal to the Difference Between the Present Value