Financial Control Question (Truth or False)

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Write RELIABLE if the statement if the statement is INVALID if the statement is false

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1,In capital budgeting decision , the required rate of return is the minimum rate of investment

2, post-audit is a must ; however , ít is not a simple process

3, Intial cash inflows may come from disposal of the company’s old assets

4, the main objective of post -audit is to improve forecast and improve the relationship to its creditors

5, a net cash flow is the difference between inflows and outflows of cash which result from a firm’s capital expenditure

6, the code of ethics of professional associations may or may not contribute to the establishment of the company ‘s internal control system

7, segregating activities and responsibilities of a company’s employees allows different people to perform various tasks of a specific transaction

8, the mutually exclusive projects are evaluated individually unlike the independent capital investments

9, a computerized Accounting Information System (AIS) tends to fragment the paper trail, which makes the system’s audit trail difficult to follow


10, the bases for capital budgeting decision are purely quantitative in nature

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