A concept which explains a received money in present time, is more valuable than money received in future is called __________?
Correct answer: C. time value of money
- A. lead value of money
- B. storage value of money
- C. time value of money
- D. cash value of money
Explanation
The time value of money means a sum available today is worth more than the same sum received later because today’s money can earn a return. The other terms are not standard financial concepts for this idea.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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