Although most accountants believe that the use of present value creates relevant accounting measurements, there are some reliability questions.Discuss the reasons why present value computations create less reliable measurements.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in discounted cash flow analysis.

Reliability Questions

Inquiries aimed at verifying the accuracy and dependability of information or responses.

Relevant Accounting

Accounting practices and information that are pertinent and useful for decision-making purposes.