The Real Cost of Some Business Assets Might Not Be

The real cost of some business assets might not be reflected in the calculation of future earnings streams.This issue is best addressed by which of the following?

A) The capitalization of earnings method is used for the business and all assets as reported in the financial statements.
B) The capitalization of earnings method is used for the business and all assets as reported in the tax statements.
C) The earnings multiplier is adjusted to better reflect the risk of the industry.
D) The assets are examined to determine if there is any appreciation in value for reasons other than their contribution to business operations.