Question

TRUE OR FALUSE

1) the accounting is identical to the finance
2) It is better for the company to own assets greater than the liabilities and owner-equity
3) The start of any company done by the operation, then the financing then the investing.
4) The cash flow statement contain the finance and investing activities only
5) The cash ratio used to measure the profitability of the company
6) It is a positive indicator to have a company have positive cash flow from investing activities
7) In order to obtain budgeted cash flow statement we have to make projected income statement and balance sheet
8) The net present value of any project must be positive to accept

Answer 1

1)TRUE

2)TRUE

3)FALSE

4)TRUE

5)TRUE

6)FALSE

7) TRUE

8)FALSE

9)FALSE

10)TRUE

Answer 2

Step-by-step explanation:

1. FALSE, accounting and finance are related but different disciplines. Accounting focuses on recording, classifying, and reporting financial transactions, while finance deals with managing and investing money to maximize wealth.

2. TRUE, it is generally better for a company to have more assets than liabilities and owner's equity, as it indicates financial stability and solvency.

3. FALSE, the start of a company can involve any combination of operation, financing, and investing activities, and the order can vary depending on the business model and industry.

4. FALSE, the cash flow statement includes operating, investing, and financing activities.

5. FALSE, the cash ratio is a liquidity ratio that measures a company's ability to pay off short-term liabilities with its cash and cash equivalents. It does not measure profitability.

6. TRUE, a positive cash flow from investing activities means that a company is generating cash from its investments, which is generally seen as a positive indicator of financial health.

7. TRUE, the cash flow statement is derived from the projected income statement and balance sheet, as well as other information about the company's activities and financial position.

8. TRUE, the net present value (NPV) of a project measures the difference between the present value of its expected cash flows and the initial investment required to undertake the project. A positive NPV indicates that the project is expected to generate more cash than it costs, and is generally considered a good investment.