• please do explanantions
  

1. Part 1 (10 marks). State whether the following statements are True or False and explain your choice. Marks will be given mainly for the quality of the explanation a. (2 marks) Capital budgeting decision is the decision as to which longterm assets to buy. b. (2 marks) Decrease in Inventory Account is a use of cash. C. (3 marks) The initial cost of a project is $40,000 and the expected annual cash inows are $8,000 per year for 7 years. The Discounted Payback Period will be more than 5 years. (2 marks) One of the advatages of the \"partnership\" form of business organization is limitted liabilities. (1 marks) The Statement of Financial Position is a one-day snapshot of the market value of the rm's assets and liabilities and shareholders' equity at a given point in time