BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash flow is what matters.
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Money has a time value.
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Risk requires a reward.
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Incremental profits determine value.
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Detailed explanation-1: -Answer and Explanation: The five basic principles of finance include all of the following EXCEPT d) Incremental profits determine value.
Detailed explanation-2: -WHAT ARE THE FOUR PRINCIPLES OF FINANCE? The four principles of finance are income, savings, spending, and investing. Following these core principles of personal finance can help you maintain your finances at a healthy level. In many cases, these principles can help people build wealth over time.
Detailed explanation-3: -Answer and Explanation: Correct option is d. Financial management is based on the inflow and outflow of money or cash. This principle states that the primary concern in measuring wealth or value should be cash flow, not accounting profit.