The concept that interest causes the value of money received today to be greater than the value of that same amount of money received in the future is referred to as the:

Question

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The concept described in the question is referred to as the time value of money. Option A (Monetary unit assumption) refers to the fact that financial transactions are recorded in a common unit of measurement. Option B (Historical cost principle) refers to the accounting practice of recording assets at their original purchase cost. Option D (Matching principle) refers to the practice of matching expenses with related revenue in the same accounting period.

The Concept That Interest Causes the Value of Money Received