What Is the Term Used to Describe an Annuity with an Infinite

question 82

Multiple Choice

What is the term used to describe an annuity with an infinite life?

• A)perpetuity
• B)infinuity
• C)infinity due
• D)There is no special term for an infinite annuity.

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Definitions:

Fiduciary Funds

These are funds used to account for resources held by an entity in a trustee or agent capacity for others, ensuring these assets are managed according to the trust agreement.

Proprietary Funds

Governmental accounting term for funds used by an organization that behaves like a private business, where the costs of providing goods or services to the public must be recovered through sales and fees.

Broad Classifications

Broad classifications refer to the general categories or groups used to organize similar entities, concepts, or items based on shared characteristics or functions.

Modified Accrual Accounting

An accounting method that combines elements of both accrual and cash basis accounting, recognizing revenues when they are available and measurable, and expenses when incurred.