The time value of money concept is fundamental to the analysis of cash inflow and outflow decisions covering periods of over one year.

Question

Quizplus · Accepted Answer

The time value of money concept is a fundamental principle in finance and is used to compare cash flows that occur at different points in time. It is essential in decisions that involve cash inflows and outflows occurring over a period of more than one year, including investment decisions, loan repayments, and other financial transactions. Thus, the statement is true.

The Time Value of Money Concept Is Fundamental to the Analysis