Finance as We Know It Today Grew Out of and Lies

question 414

Multiple Choice

Finance as we know it today grew out of and lies between economics and accounting. Economists developed the notion that an asset's value is based on the future cash flow the asset will provide. Accountants provided the information about the likely size of those cash flows. So, people who work in finance require knowledge of both economics and accounting. Eugene F. Brightman et al., Fundamentals of Financial Management.

• A) Argument; conclusion: Economists developed the notion ... asset will provide.
• B) Argument; conclusion: People who work in finance ... accounting.
• C) Argument; conclusion: Accountants provided the information ... cash flows.
• D) Nonargument.
• E) Argument; conclusion: Finance as we know it today ... accounting.

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