In the All About You feature, you learned about the importance of your personal resum being a

In the “All About You” feature, you learned about the importance of your personal resumé being a faithful representation of your personal background, education, and experience. To apply this concept further, assume that you are applying for a car loan. The loan application requires that you prepare two reports: 

(1) A projected cash budget  

(2) Information about your assets and liabilities. 

The information in the loan application will be used to determine if the bank manager will approve the loan or not. 

Instructions 

a. Why would a bank manager ask you to complete a projected cash budget and provide information about your assets and liabilities in order to decide whether or not to approve your loan? What is the bank manager trying to determine about you? 

b. Describe the qualitative characteristics that the information you provide to the bank manager should have in order for this information to be useful to the bank manager. 

c. The cash budget will be primarily based on future cash inflows and outflows. How might a bank manager verify the reasonableness of the cash budget? 

d. What might be the consequences to you if the bank manager determines the information provided is misleading?