💰 CPA Exam Prep

The time value of money principle states that:

A Money loses value over time due to inflation only
B A dollar today is worth more than a dollar in the future due to earning potential
C Money gains value over time
D Present and future values are equal

✓ Correct Answer: Option B

TVM: money available now can be invested and grow. $1 today > $1 tomorrow because of investment opportunity.

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