The five basic principles of finance include all of the following except:
A) Cash flow is what matters.
B) Money has a time value.
C) Risk requires a reward.
D) Incremental profits determine value.

Question

Quizplus · Accepted Answer

The statement "Incremental profits determine value" is not one of the five basic principles of finance. The other three principles listed (cash flow, time value of money, and risk-reward trade-off) are all fundamental principles in the field of finance.

The Five Basic Principles of Finance Include All of the Following