Neither the balance sheet method nor the adjusted balance sheet method of valuing a business considers the future earning power of the business.

Question

Quizplus · Accepted Answer

Both the balance sheet method and the adjusted balance sheet method only consider the current assets and liabilities of a business and do not take into account the potential future earnings of the business. Other valuation methods, such as the income approach or market approach, consider the future earning potential of the business.

Neither the Balance Sheet Method nor the Adjusted Balance Sheet