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.

---

Definitions:

Standard Process

A method or procedure that has been widely accepted as effective and efficient within a specific field or industry.

Exabytes

A unit of information or computer storage equivalent to one quintillion bytes or a billion gigabytes.

Information

Data that has been processed in a manner that makes it meaningful and useful to those who receive it.

People

Human beings considered collectively, often within a specific context or environment.