Which of the Following Statements Is CORRECT

question 63

Multiple Choice

Which of the following statements is CORRECT?

• A) A time line is not meaningful unless all cash flows occur annually.
• B) Time lines are not useful for visualizing complex problems prior to doing actual calculations.
• C) Time lines can be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly.
• D) Time lines can only be constructed for annuities where the payments occur at the end of the periods,i.e. ,for ordinary annuities.
• E) Time lines cannot be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity.

---

Definitions:

Accounting Records

Documents and books that keep track of all financial transactions of an entity.

Certification

A formal process by which an individual or system is verified to meet certain predefined criteria, often related to quality, education, or skills.

Accountants

Accountants are professionals who carry out accounting tasks, including auditing, financial statement analysis, and advice on financial planning.

CISA

Certified Information Systems Auditor, a professional certification for information technology audit professionals.