A series of equal receipts at equal intervals of time when each receipt is received at the beginning of each time period is called an
A) ordinary annuity.
B) annuity in arrears.
C) annuity due.
D) unearned receipt.

Question

Quizplus · Accepted Answer

An annuity due is a series of equal receipts at equal intervals of time when each receipt is received at the beginning of each time period. This is in contrast to an ordinary annuity where the payments are received at the end of each time period, and an annuity in arrears where the payments are received in arrears or after the end of each time period. An unearned receipt is not a type of annuity.

A Series of Equal Receipts at Equal Intervals of Time