Which of the Following Statements About Money Is Not True

question 28

Multiple Choice

Which of the following statements about money is not true?

• A)Income-earning investment opportunities exist.
• B)Present dollars are worth more than future dollars.
• C)There is an opportunity cost of holding money.
• D)When interest rates are positive,future dollars are more valuable than present dollars.

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Definitions:

Depreciation Expense

A charge that reflects the cost of using fixed assets over their useful life.

Plant Assets

Durable assets with physical form, employed in running a company and not meant for resale.

Year Ended

The conclusion of a 12-month accounting period, at which financial statements are prepared.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.