Question

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.
A) True
B) False

Answer 1

Answer: True.

Explanation:

The statement in question is correct because an annuity due is a form of payment on a property/equipment that is paid at the beginning of a period(e.g a month/year). Annuity due is paid periodically and is always at the start of a period.