Answer:
False
Explanation:
The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.
This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.
The cash flow is computed both by Direct and Indirect methods.
In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.
The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.
Answer:
number of periods = 8 years.
Explanation:
We know,
Future Value = Present value × 
Here,
Present value = PV = $2,500
Future value = FV = $3,500
Interest rate (Compounding) = 5% = 0.05
We have to determine how many years (Periods) it will take, n = ?
Putting the values into the above formula,
$3,500 = $2,500 × 
or,
= $3,500 ÷ $2,500
or, n log 1.05 = 1.4
or, n × 0.17609 = 1.4
or, n = 1.4 ÷ 0.17609
Therefore, number of years = 7.95 or 8 years.