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In: Accounting

Answer the following true/false 1.A permanent mortgage is one on which interest only has to be...

Answer the following true/false

1.A permanent mortgage is one on which interest only has to be paid

2.A pro‑forma income statement is an income statement calculated on a cash basis

3.The best way to evaluate feasibility study financial projections is to convert the projected cash flow figures using net present value (NPV) or internal rate of return (IRR).

4.The concepts of financial management are basically the same for both profit and non-profit organizations

5.Funds raised through proper financial management should never be invested in assets such as food and beverage inventories

Solutions

Expert Solution

ANSWER

1.A permanent mortgage is one on which interest only has to be paid TRUE

2.A pro‑forma income statement is an income statement calculated on a cash basis TRUE

EXPLAIN

Pro Forma Income Statement. Pro-forma income statement is also an income statement which however is prepared as a projection of the future as opposed to the actual transactions of the past.

3 The best way to evaluate feasibility study financial projections is to convert the projected cash flow figures using net present value (NPV) or internal rate of return (IRR).TRUE

EXPLAIN

A financial feasibility study projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations. The study considers how much cash is needed, where it will come from, and how it will be spent. ... The study is an assessment of the financial aspects of something.

4.The concepts of financial management are basically the same for both profit and non-profit organizations FALSE

5 Funds raised through proper financial management should never be invested in assets such as food and beverage inventories TRUE

EXPLAIN

If we raised funds through financial management that means we have facing financial problems so we do not investe in assets such as food and beverage inventories

ekkarill92 answered 6 months ago
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