The Most Important Thing to Note About an Annuity Is

question 45

Multiple Choice

The most important thing to note about an annuity is

• A)that the payment must not change over time.
• B)that the payment increases according to the discount rate.
• C)it reflects the growth of a single lump sum.
• D)that it reflects the power of simple interest.

---

Definitions:

Accounts Receivable

Funds that are due to a company from its customers for goods or services that have been delivered or sold but not yet paid for.

Inventories

are the raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Operating Expense

Operating expense refers to the costs associated with the day-to-day operations of a business, excluding direct production costs.

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments, not directly related to the entity's primary business operations.