Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Finding the present value and compounding are the same.
• B) A dollar today and a dollar in one year are not equivalent.
• C) 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.
• D) The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money.

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Definitions:

Lease Liability

An obligation representing future lease payments for the use of assets, recognized on the balance sheet by lessees under new accounting standards.

Capital Lease

A lease agreement that grants a lessee essentially all the risks and rewards of ownership, so it's accounted for on the balance sheet as an asset and liability.

Income Tax Expense

The amount of money a company is required to pay in taxes based on its taxable income, accounted for in the income statement.

Deferred Tax Liability

A tax obligation that a company owes but is not required to pay until a future date, often resulting from differences in accounting practices.