Question

What important aspects are required to understand the concept and practice of the time value of money?

a.

Only Timing and the amount of each cash flow in a stream

b.

Timing and the amount of each cash flow in a stream, and Future value of each cash flow

c.

Timing and the amount of each cash flow in a stream, Future value of each cash flow, and Present value of each cash flow

d.

Only Intra-year compounding and discounting

Posted under IC 89 Management Accounting

Answer: (c).Timing and the amount of each cash flow in a stream, Future value of each cash flow, and Present value of each cash flow Explanation:Important aspects required to understand the concept and practice of the time value of money include timing and the amount of each cash flow in a stream, future value of each cash flow, and present value of each cash flow.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What important aspects are required to understand the concept and practice of the time value of money?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does the financial management process and perspectives of an enterprise depend on?

View solution

Q. What has the Indian Financial System undergone after the opening up of the Indian economy?

View solution

Q. What is closely associated with financial management functions in a firm?

View solution

Q. What does the effectiveness of financial decisions, the main objective of financial management, require?

View solution

Q. What impacts and influences financial decisions?

View solution

Q. How is the financial management function in a firm broadly divided?

View solution

Q. What is the relationship between Accounting and Control function and Treasury Management functions?

View solution

Q. What are the tasks mainly included in Treasury Functions?

View solution

Q. What tasks are mainly included in Finance and Accounting Control functions?

View solution

Q. What constitutes the core of treasury management?

View solution

Q. What is the objective of treasury management?

View solution

Q. What must the finance manager have to achieve the objective of optimizing risk and return?

View solution

Q. What does the finance function assist the corporate management in?

View solution

Q. What is the primary focus of financial management?

View solution

Q. Why is procurement of funds decision considered critical?

View solution

Q. What is the responsibility of the financial manager in the allocation of fund decisions?

View solution

Q. How does financial accounting differ from financial management in terms of focus?

View solution

Q. What is the basis of financial accounting?

View solution

Q. What does financial management primarily involve?

View solution

Q. What qualifications are necessary for carrying out the role and responsibility of a financial manager?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Cost Accounting

Dive into the realm of Cost Accounting with our specialized category. Explore cost...

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Verbal Ability

Hone your language and communication skills with our Verbal Ability category. Enhance...