The Time Value of Money in Accounting

This article focus on to describe the Time Value of Money in Accounting. Here is a large difference in the two kinds of decisions, short-term and long-term is the time value of cash, which does not ought to be taken into account when making short-term decisions, but does and once making long-term, capital expense decisions. A dollar received today has greater value than a dollar to be received 1 year from now for a few different reasons – possibility, inflation and interest.