Which of the Following Statements Is FALSE

question 48

Multiple Choice

Which of the following statements is FALSE?

• A)The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
• B)Most car loans,mortgages,and some bonds are annuities.
• C)A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
• D)An annuity is a stream of N equal cash flows paid at irregular intervals.

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Definitions:

Shares Outstanding

The total number of a company's shares that are owned by shareholders, including both public and private entities, available in the market.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Statement Of Financial Position

Another term for a balance sheet; it shows a company's assets, liabilities, and equity at a specific point in time.

Intangible Asset

An asset that lacks physical substance but provides economic benefits to its owner, such as trademarks, patents, and goodwill.