Final answer:
When applying for a personal loan, it is common for lenders to require a personal balance sheet and a personal cash flow statement to assess the borrower's financial situation and ability to repay the loan.
Step-by-step explanation:
The statement is false.
When applying for a personal loan, it is common for lenders to require a personal balance sheet and a personal cash flow statement. These documents provide a comprehensive overview of the borrower's financial situation, including their assets, liabilities, income, and expenses. This information helps the lender assess the borrower's ability to repay the loan and manage their finances effectively.
For example, a personal balance sheet lists all of the borrower's assets, such as their bank accounts, investments, and real estate, as well as their liabilities, such as credit card debt and student loans. The difference between the total assets and total liabilities is known as the borrower's net worth, which is an important factor in evaluating creditworthiness.