Which of the following statements is CORRECT?
A. Some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amounts.
B. A time line is not meaningful unless all cash flows occur annually.
C. Time lines are useful for visualizing complex problems prior to doing actual calculations.
D. Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly.
E. Time lines cannot be constructed for annuities where the payments occur at the beginning of the periods.
Answer: C
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Which of the following terms describes the presumption that a firm will remain in operation long enough to carry out its current plans, and will, in the normal course of its operations, realize changes in the fair values of its assets either by using those assets or selling them?
a. going concern b. relevance c. reliability d. recognition e. realization
As the leader of a family-owned business grows older, he/she must guard against letting past successes lead to trying to maintain the status quo.
Answer the following statement true (T) or false (F)
Substituting EBITDA for EBIT when computing the times interest earned ratio will make the company appear
A) more leveraged. B) less leveraged. C) more profitable. D) less efficient.
The assessment of readiness should start just before the go live date
Indicate whether the statement is true or false