Which of the Methods Listed Below Is Not Used to Determine

question 5

Multiple Choice

Which of the methods listed below is not used to determine substantially equal periodic payments?

• A)Amortization method.
• B)Annuitization method
• C)Periodic method.
• D)Required minimum distribution method.

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Definitions:

Credit Terms

Statements of the credit period and any discounts offered—for example, 2/10, net 30.

Discount Period

The time interval between when a bill of exchange is issued and its payment date, during which the bill is sold at a discount from face value.

2/10, Net 30

A common credit term indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days, otherwise, the full invoice amount is due in 30 days.

Accruals

Adjustments in accounting for income that has been generated but not yet documented, and for costs that have been accrued but not yet documented.