Which of the following statements is true?
A)The useful life of the financed asset must be less than the maturity of the loan.
B)An entrepreneur should try to camouflage any weaknesses in the small business.
C)Projected financial statements should prove the company's ability to repay the loan.
D)Officers' personal assets that can be used as collateral must be included in the financial statement.

Question

Quizplus · Accepted Answer

Projected financial statements are an essential part of a loan application. They must accurately demonstrate the company's ability to repay the loan, both principal and interest. Good financial projections can make the difference between acceptance and rejection of the loan application. Therefore, projected financial statements should be prepared with great care and accuracy.

Which of the Following Statements Is True