One of the basic principles of accounting, which dictates that companies recognize revenue when the performance obligation is satisfied.

Flowers, Inc had beginning retained earnings of $125,000 on January 1, 2017

During the year, Flowers declared and paid $40,000 of cash dividends and earned $55,000 of net income. Prepare a statement of retained earnings for Flowers, Inc for the year ending December 31, 2017. What will be an ideal response

The net present value of future cash inflows received in earlier years is higher than future cash inflows received in later years

Indicate whether the statement is true or false