Disregarding Risk, If Money Has Time Value, It Is Impossible

question 119

True/False

Disregarding risk, if money has time value, it is impossible for the future value of a given sum to exceed its present value.

---

Definitions:

Adjustments

Modifications made to financial records or statements to correct errors, account for accruals, or align with accounting principles.

Adjusting Entries

Entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Post-Closing Trial Balance

A listing of all company accounts that remain after closing entries are made, used to check the accuracy of closing procedures and the balance of permanent accounts.

Adjusted Trial Balance

The Adjusted Trial Balance is a list of all accounts and their balances after adjustments have been made for entries like accruals and deferrals, ensuring the accuracy of financial statements.