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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 not 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 can be constructed for annuities where the payments occur at either the beginning or the end of the periods.

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Answer:

Explanation:

A timeline list events in a chronological order.

If cash flows do not occur annually, a timeline can still be meaningful. Timelines can represent cash flows that occur daily , monthly, quarterly , yearly , bi - annually etc

In cases where some cash flows occur annually and others occur quarterly, the space on the timeline between cash flows that occur annually and cash flows that occur quarterly woild be different in order to indicate the different lengths of time.

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