Where an asset is measured using economic value, the figure involved:
A) may lack reliability.
B) represents the discounted value of expected future earnings from the use of the asset.
C) represents a measure of current value.
D) all of the above.

Question

Quizplus · Accepted Answer

Economic value involves estimating the future earnings from an asset and discounting those earnings back to their present value. This process can introduce subjectivity and variability, making the figure potentially less reliable. It represents a measure of current value based on future earnings, thus encompassing all the mentioned aspects.

Where an Asset Is Measured Using Economic Value, the Figure