Which of the Following Statements Is CORRECT

question 99

Multiple Choice

Which of the following statements is CORRECT?

• A) The cash flows for an ordinary (or deferred)annuity all occur at the beginning of the periods.
• B) If a series of unequal cash flows occurs at regular intervals,such as once a year,then the series is by definition an annuity.
• C) The cash flows for an annuity due must all occur at the beginning of the periods.
• D) The cash flows for an annuity may vary from period to period,but they must occur at regular intervals,such as once a year or once a month.
• E) If some cash flows occur at the beginning of the periods while others occur at the ends,then we have what the textbook defines as a variable annuity.

---

Definitions:

Financial Information

Data concerning the financial status of an entity, including balance sheets, income statements, cash flow statements, and more, used in decision-making processes.

Financial Information

Data pertaining to the monetary transactions, assets, liabilities, and overall financial health of an entity.

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Financial Information

Data concerning the financial status and performance of an individual or organization, including income, expenses, and assets.