What accounting concept is valuation of promise to receive cash in the future at present cost?

The accounting concept that relates to the valuation of a promise to receive cash in the future at present cost is known as the "time value of money." This principle holds that a specific amount of money today is worth more than the same amount in the future due to its potential earning capacity. In accounting, this concept is applied through techniques like present value calculations, where future cash flows are discounted back to their present value using an appropriate discount rate. This approach helps in accurately assessing the worth of financial instruments and obligations.