Use the figure for the question(s) below.
-Which of the following statements regarding the timeline is false?
A) Date 1 is the end of the first year.
B) Date 0 is the beginning of the first year.
C) The space between date 0 and date 1 represents the time period between two specific dates.
D) You will find the timeline most useful in tracking cash flows if you interpret each point on the timeline as a period or interval of time.

Question

Use the figure for the question(s) below. 
-Which of the following statements regarding the timeline is false?
A) Date 1 is the end of the first year. 
B) Date 0 is the beginning of the first year. 
C) The space between date 0 and date 1 represents the time period between two specific dates. 
D) You will find the timeline most useful in tracking cash flows if you interpret each point on the timeline as a period or interval of time.

Quizplus · Accepted Answer

The timeline is most useful in tracking cash flows if you interpret each SPACE between two points on the timeline as a period or interval of time, not each POINT on the timeline.

Use the Figure for the Question(s) Below