Final answer:
Prepaid insurance does not use present values in accounting measures, unlike pensions, sinking funds, and leases, which do involve present value for their future cash flows. Option b) is correct.
Step-by-step explanation:
The question identifies which situation does not base an accounting measure on present values. The correct answer is Prepaid insurance. Accounting for pensions, sinking funds, and leases often involves present value calculations as these involve future cash flows that need to be discounted to their present value. However, prepaid insurance is accounted for as a current asset representing payment for insurance coverage that will be used in the current or a short future period, thus it does not involve present value accounting.