Which of the following valuation methods does not consider the future income-earning potential of a business?
A)Balance sheet technique
B)Excess-earnings method
C)Discounted future earnings approach
D)Market approach

Question

Quizplus · Accepted Answer

Balance sheet technique is a method of valuation that focuses on the current value of a business's assets and liabilities, and doesn't take into account the future income-earning potential of the business. The other three methods, Excess-earnings method, Discounted future earnings approach and Market approach consider the future income-earning potential of a business.

Which of the Following Valuation Methods Does Not Consider the Future