Gale Corporation leases the printing equipment it uses. The terms of the lease require the monthly lease payments to be made at the beginning of every month. This is an example of an annuity due.
Answer the following statement true (T) or false (F)
True
Annuity due is an annuity with payments that occur at the beginning of each period. See 4-1: Cash Flow Patterns
You might also like to view...
Which of the following is not a reason for a direct materials quantity variance?
A) Malfunctioning equipment B) Purchasing of inferior raw materials C) Material requiring rework D) Spoilage of materials
Which of the following is a weak internal control over cash collections from receivables?
A) The credit department should have no access to cash. B) A credit department should evaluate customers' credit applications to determine whether they meet the company's approval standards. C) A company should have written approval standards for processing customers' credit applications. D) In order to avoid losing sales, all customers' credit applications should be approved.
When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as
A. tax protection. B. expat tax. C. tax equalization. D. compensatory tax.
Answer the following statement(s) true (T) or false (F)
1. Time series data can exhibit seasonal patterns of less than one month in duration. 2. When using a moving average of order k to forecast, a small value for k is preferred if only the most recent values of the time series are considered relevant. 3. In situations where you need to compare forecasting methods for different time periods, relative measures such as mean absolute error (MAE) are preferred. 4. In order to use moving averages to forecast a time series, the first step is to select the order k, the number of time series values to be included in the moving average. 5. When forecasting, if a greater number of past values are considered relevant, then we generally opt for a larger value of k.