Question

Under what circumstances should sellers consider the time value of money when recognizing revenue? Please answer...

Under what circumstances should sellers consider the time value of money when recognizing revenue? Please answer in your own words. Do not use outside resources.

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Answer #1

circumstances should sellers consider the time value money when recognizing revenue ..it means that money value change time by time .if you have some money right now than.that value will not same after some days that becouse if you invest this money or use in business .it will increase.The sum of money received in future is less valuable than it is today. In other words the present worth of money received after some time will be less than a money received today. so we can that seller always try to recive money fast and pay later so that he can maximize use and take advantage of the money.

reasons why money can be more valuable today than in the future????? -risk ,inflation,market condition,right use of money etc.....

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