Accounting
Business

The Time Value of Money in Accounting

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.