๐Ÿ’ฐ CPA Exam Prep

The time value of money concept means:

A Money never changes value
B A dollar today is worth more than a dollar in the future
C Future money is always worth more
D Interest rates do not matter

โœ“ Correct Answer: Option B

Due to earning potential (interest), money available now is worth more than the same amount in the future.

๐Ÿ’ก Why is B) the correct answer?

The correct answer to the question "The time value of money concept means:" is Option B: A dollar today is worth more than a dollar in the future.

The other options โ€” A) Money never changes value, C) Future money is always worth more, D) Interest rates do not matter โ€” are incorrect for this CPA Exam Prep question. As explained above: Due to earning potential (interest), money available now is worth more than the same amount in the future.

๐Ÿ“š About This CPA Exam Prep Practice Question

This 1-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

Related CPA Exam Prep Questions