Which of the following statements regarding economic capital and economic income is incorrect? (i) Economic income measurements are typically more subjective than measurements of accounting income based on historical cost (ii) Economic capital is a forward-looking concept, which requires making ex-ante estimations (iii) The measurement of economic income for a given accounting period is typically different from the accounting income based on historical cost (iv) The computation of economic capital requires present-value calculations (v) Economic income can be defined as the maximum consumption possible without reducing the value of capital (vi) The measurement of economic capital typically does not include unrealised cash flows a. (i) b. (ii) c. (iii) d. (iv) e. (v) f. (vi)
Which of the following statements regarding economic capital and economic income is incorrect?
(i) Economic income measurements are typically more subjective than measurements of accounting income based on historical cost
(ii) Economic capital is a forward-looking concept, which requires making ex-ante estimations
(iii) The measurement of economic income for a given accounting period is typically different from the accounting income based on historical cost
(iv) The computation of economic capital requires present-value calculations
(v) Economic income can be defined as the maximum consumption possible without reducing the value of capital
(vi) The measurement of economic capital typically does not include unrealised
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