A series of equal periodic finite cash flows that occur at the beginning of the period are known as a/an ________.
A)ordinary annuity
B)annuity due
C)perpetuity
D)amortization

Question

Quizplus · Accepted Answer

An annuity due is a series of equal periodic finite cash flows that occur at the beginning of the period. An ordinary annuity has cash flows that occur at the end of each period, while a perpetuity has a never-ending stream of equal cash flows. Amortization refers to the process of reducing the value of an asset or liability over time through regular payments.

A Series of Equal Periodic Finite Cash Flows That Occur