Money Received Today Is Worth More Than Money That Will

question 17

Multiple Choice

Money received today is worth more than money that will be received in the future. This principle is known as

• A) inflation.
• B) time value of money.
• C) depreciation.
• D) decreased worth.
• E) minimizing value.

---

Definitions:

Primary Market Transaction

A financial transaction that occurs when a company first sells its securities directly to investors, such as through an initial public offering (IPO).

New Bonds

Recently issued debt securities by governments, municipalities, or corporations to finance their operations.

New Stock

Shares that are issued for the first time to the public by a company seeking to raise capital.

Indirect Method

A technique used in financial reporting to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.