Which of the following statements is NOT correct?
A)A time line is meaningful only if all cash flows occur annually.
B)Time lines can be constructed even in situations where some of the cash flows occur annually but others occur quarterly.
C)Time lines can be constructed for annuities where the payments occur at either the beginning or the end of periods.
D)The cash flows shown on a time line can be in the form of annuity payments, but they can also be uneven amounts.

Question

Quizplus · Accepted Answer

This statement is incorrect because time lines can be constructed for cash flows that occur at different intervals, not just annually. Time lines can be adjusted to reflect different time periods, such as quarterly or monthly cash flows, in order to better represent the timing and magnitude of the cash flows.

Which of the Following Statements Is NOT Correct