Asked by Bailey Glover on May 01, 2024
Verified
All streams of cash flows are called annuities.
Cash Flows
The entirety of funds transferred inwards and outwards of a business, which is vital for maintaining operational liquidity.
Annuities
Financial products sold by financial institutions that are designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time.
- Identify and differentiate between various types of annuities and their valuation.
Verified Answer
MK
Mirza KhyzarMay 06, 2024
Final Answer :
False
Explanation :
Not all streams of cash flows are annuities. An annuity refers to a fixed sum of money paid out to someone annually, typically for the rest of their life. There are many other types of cash flows that may not fit this definition.
Learning Objectives
- Identify and differentiate between various types of annuities and their valuation.
Related questions
Which of the Following Transactions Would Require the Use of ...
(Ignore Income Taxes in This Problem ...
Classify the Type of Annuity Described in the Following Scenario ...
Classify the Type of Annuity Described in the Following Scenario ...
You Are Considering Two Equally Risky Annuities,each of Which Pays ...