In financial management, the 'Time Value of Money' concept implies that: MCQ with Answer and Explanation

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In financial management, the 'Time Value of Money' concept implies that:

A. Money today is worth more than the same money in the future

B. Money today is worth less than money tomorrow

C. Inflation does not affect money

D. Money has no value over time

Answer: Option A

Solution (By JKSSB Mock Tests)

The time value of money states that a sum of money is worth more now than the same sum will be at a future date due to its earning capacity.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

In the context of PFMS, the 'Treasury Single Account' (TSA) is maintained with:

A. Comptroller and Auditor General

B. State Bank of India

C. Reserve Bank of India

D. Controller General of Accounts

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Correct Answer: Option C

Explanation:
The TSA is a unified bank account of the government, and it is maintained with the Reserve Bank of India (RBI), which acts as the banker to the government.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'GST Compensation Cess' is levied to compensate states for:

A. Excess expenditure

B. Loss of revenue due to GST implementation

C. Loan repayment

D. Natural calamities

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Correct Answer: Option B

Explanation:
Compensation cess compensates states for revenue shortfall during the transition period.

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Question #3

An unregistered partnership firm:

A. Has no existence

B. Cannot enter into contracts

C. Cannot sue but can be sued

D. Is illegal

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Correct Answer: Option C

Explanation:
An unregistered firm faces disabilities like not being able to enforce its rights in court.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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