Which of the following statements regarding economic capital and econo.pdf

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

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