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