Which of the Following Statements Is FALSE About Valuing Cash

question 30

Multiple Choice

Which of the following statements is FALSE about valuing cash at different points in time?

• A) Finding the present value (PV) 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.

---

Definitions:

Fringe Benefits

Additional benefits offered to employees beside their basic salary, such as health insurance, paid vacations, or retirement plans.

Payroll

The total amount of money that a company pays to its employees, which involves calculating salaries, wages, bonuses, deductions, and net pay.

Human Resources Management (HRM)

The strategic approach to managing a company’s employees, focusing on policies and systems to maximize workforce performance and satisfaction.

Philosophies

Fundamental beliefs or theories that guide actions and decisions, often applying to disciplines like ethics, education, politics, and personal development.