A method of determining the value of a business based on its profit potential is known as a/an
A) Balance sheet method of business valuation
B) Asset method of business valuation
C) Income statement method of valuation
D) Cash-flow method of valuation

Question

Quizplus · Accepted Answer

The income statement method of valuation is based on the profit potential of a business. It uses the income statement to determine the value of a business.

A Method of Determining the Value of a Business Based