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Which is the concept of net worth method

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Reference no: EM132673573

Problem 1: The net worth method, otherwise known as the capital maintenance approach, is a concept in which

a. profit equals the change in the market value of the net assets during a period.

b. profit is measured as the amount that an enterprise could distribute to its owners and be as well off at the end of the period as it was at the beginning of the period.

c. the financial statement effects of business events classified as revenues, gains, expenses and losses, which are used to measure and define profit

d. market values adjusted for the effects of inflation or deflation are used to measure profit

Reference no: EM132673573

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