Which of the Following Statements Is CORRECT

question 135

Multiple Choice

Which of the following statements is CORRECT?

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

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