desired b Anything for whicha measurement of cots is desired

desired b. Anything for whicha measurement of cots is desired. The amount of expenditure incurred on a specific cost object 3. Which of the following is a direct project cot? b. Workers Compensation insurance Piping for an irrigation project A and B 4- All of the following is correet about ratio analysis EXCEPT a. Gives an idea of how well the company is doing b. Standardizes numbers; facilitates comparisons e. Used to highlight weaknesses and strengths Creditors need not to use ration analysis a. The net cash flow is the difference between total cash inflows and cash b. The end-of-period convention is commonly used, and period num 5- All of the following is correet about cash flow analysis EXCEPT outflows for a specified period of time. placed at the end of each time period c. Downward arrows represent expenses d. The cash-flow diagram does not dependent on the point of view(C.g viewpoint of borrower or lender)

Solution

Note:

As per information of the question, you asked for question 4 and 5. That is why I am answering question 4 and 5.

Question – 4:

Answer is option (d). Creditors need not to use ratio analysis

Explanation;

All other three options are true but option (d) is incorrect because creditors need to use ratio analysis. As we know that creditors provide funds to the firm or creditors sell goods to firm on credit that is why creditors are also interested in the ratios analysis of the firm. So it is true that creditors need to use ratios analysis for knowing actual position of the firm.

Question – 5:

Answer is option (d) The cash flow diagram does not dependent on the point of view (e.g. viewpoint of borrower or lender).

Explanation;

Cash flow diagram dependent on the point of view (e.g. viewpoint of borrower or lender) because from borrower point of view it will be an inflow of cash whereas from lender point of view it will be a cash outflow.

Thus we can say that cash flow diagram dependent on the point of view viewpoint of borrower or lender. So it is clear that option (d) is incorrect and other three options are correct with reference to cash flow analysis.