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Time value of money supports the comparison of cash flows recorded at different time period by

A. Discounting all cash flows to a common point of time

B. Compounding all cash flows to a common point of time

C. Using either a or b

D. None of the above

Related Questions on Management Accounting Test Questions

Time value of money indicates that

A. A unit of money obtained today is worth more than a unit of money obtained in future

B. A unit of money obtained today is worth less than a unit of money obtained in future

C. There is no difference in the value of money obtained today and tomorrow

D. None of the above