Which of the Following Statements Is INCORRECT

question 102

Multiple Choice

Which of the following statements is INCORRECT?

• A) A time line is meaningful only if all cash flows occur annually.
• B) Time lines can be constructed even in situations where some of the cash flows occur annually but others occur quarterly.
• C) Time lines can be constructed for annuities where the payments occur at either the beginning or the end of periods.
• D) The cash flows shown on a time line can be in the form of annuity payments, but they can also be uneven amounts.

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Definitions:

Implied Warranty

A legal assumption that a product will meet certain standards of quality and reliability without being explicitly stated.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights.

Implied Warranty of Fitness

A legal guarantee that goods sold will meet the specific purpose for which the buyer is purchasing them, even if not explicitly stated.

Implied Warranty of Merchantability

A legal presumption that a product sold will meet the buyer's reasonable expectations of quality and functionality.