Which of the Following Statement Is Incorrect

question 81

Multiple Choice

Which of the following statement is incorrect?

• A)Money is wealth but not all wealth is money
• B)Money is a means of payment but is not part of wealth
• C)An asset doesn't have to be a means of payment to be a part of a person's wealth
• D)All items considered wealth can eventually be converted to a means of payment

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Definitions:

Cash Inflows

Money received by a business from its operational activities, investments, or financing.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Net Present Value

A financial metric that calculates the current value of all future cash flows generated by a project, minus the initial investment cost.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.