Which of the following statements is INCORRECT?
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

A time line can still be constructed for cash flows that occur quarterly or at other intervals, but it may require adjusting the time axis on the graph. Therefore, statement A is incorrect as it implies that time lines are only meaningful for annual cash flows.

Which of the Following Statements Is INCORRECT