Valuation techniques that convert future amounts to a single current amount and determines the fair value on the basis of the value indicated by current market expectations about those future amounts is an example of:
A)the fair value approach
B)the income approach
C)the cost approach
D)the market approach

Question

Quizplus · Accepted Answer

The income approach involves converting future amounts to a present value using discounting techniques, reflecting current market expectations about those future amounts.

Valuation Techniques That Convert Future Amounts to a Single Current