Which of the Following Statements Is FALSE

question 71

Multiple Choice

Which of the following statements is FALSE?

• A) If you want to compare or combine cash flows that occur at different points in time, you first need to convert the cash flows into the same units or move them to the same point in time.
• B) A dollar today and a dollar in one year are not equivalent.
• C) The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money.
• D) Finding the present value (PV) and compounding are the same.

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Definitions:

Practice

The actual application or use of an idea, belief, or method, as opposed to theories about such application or use.

Departmentalization

The process of dividing an organization into different departments, which perform different tasks or functions.

Units

Measurements or quantities of a product, item, or component regarded as a single entity.

Organization

An entity, such as a company, institution, or association, composed of individuals working together towards a common goal, structured to allocate responsibilities, tasks, and authority.