Which method is more efficient to obtain an equivalence?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 1Q: What is the matching principle?
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Which method is more efficient to obtain an equivalence?

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The concept of equivalence tends to compare the cash flows in such a way that two indifferent cash flows exist at different periods are worth the same. Equalizing the cash flows is necessary for investor who is willing to choose a bigger sum in future periods rather than losing any sum at present.

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