The Process of Determining the Present Value Is Called Discounting

question 152

True/False

The process of determining the present value is called discounting because the present value is more than the future value.

---

Definitions:

Regular Audits

Periodic and systematic examinations of financial records and operations to ensure accuracy, compliance, and fairness.

Separation of Duties

A key internal control that involves dividing responsibilities among different people to reduce the risk of error or fraud.

Fraud

Dishonest or illegal trickery used to achieve financial or personal advantages.

Cashier Checks

A check issued by a bank, drawn on its own funds rather than on one of its depositor's accounts, guaranteeing payment.