Which of the Following Is Not a Factor in Explaining

question 121

Multiple Choice

Which of the following is not a factor in explaining why the present value of a future dollar is less than one dollar?

• A) Inflation
• B) Interest
• C) Risk of failure to receive expected cash inflows
• D) Historic cost

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, such as issuing debt or equity securities.

Cash Flow Per Share

A financial metric that measures a company’s operating cash flow divided by the number of its outstanding shares.

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial events are reported in financial statements globally.

GAAP

Generally Accepted Accounting Principles, standard guidelines and procedures for financial accounting and reporting in the U.S.