A Cash Flow That Only Occurs in Equal Amounts Each

question 21

Multiple Choice

A cash flow that only occurs in equal amounts each year is referred to as:

• A) a lump sum.
• B) a perpetuity.
• C) an annuity.
• D) None of these.

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Definitions:

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.

Contractor

A person or company that undertakes a contract to provide materials or labor to perform a service or do a job.

Billings

The total amount of business conducted or billed to clients over a particular period, often used in professional firms.