Use the figure for the question(s) below.
-Which of the following statements regarding the timeline is false?
A) Date 1 is one year from now.
B) The $5,000 below date 1 is the payment you will receive at the end of the first year.
C) The $5,000 below date 2 is the payment you will receive at the beginning of the second year.
D) Date 0 represents today.

Question

Use the figure for the question(s) below. 
-Which of the following statements regarding the timeline is false?
A) Date 1 is one year from now. 
B) The $5,000 below date 1 is the payment you will receive at the end of the first year. 
C) The $5,000 below date 2 is the payment you will receive at the beginning of the second year. 
D) Date 0 represents today.

Quizplus · Accepted Answer

The statement in C is false because the $5,000 below date 2, according to standard financial timeline conventions, represents a payment at the end of the second year, not the beginning. Payments are typically assumed to occur at the end of the period unless specified otherwise.

Use the Figure for the Question(s) Below