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If Future Cash Flows Are Not Discounted the Effect in the Financial

Question 26

Multiple Choice

If future cash flows are not discounted the effect in the financial statements is to:


A) Report amounts of cash outflows that are the same but occur over different time periods as the same amount.
B) Report net cash flows at their future value rather than their present value.
C) Understate the amount of the present obligation.
D) Report net cash flows at their future value rather than their present value and understate the amount of the present obligation
E) None of the given answers.

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