An Ordinary Annuity Is Best Defined by Which One of the Following

question 16

Multiple Choice

An ordinary annuity is best defined by which one of the following?

• A)increasing payments paid for a definitive period of time
• B)increasing payments paid forever
• C)equal payments paid at regular intervals over a stated time period
• D)equal payments paid at regular intervals of time on an ongoing basis
• E)unequal payments that occur at set intervals for a limited period of time

---

Definitions:

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.

Rent Expense

The cost incurred by a business for leasing a property or equipment for operational purposes.

Income Summary

An account used in the closing process that summarizes the results of all revenue and expense accounts.

Capital

The wealth, whether in money or other assets, owned or employed in business by an individual, firm, or corporation.