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Why it is NOT appropriate for a company to match capital investment projects with the specific sources of capital used to finance them?

Investments Financial Accounting Financials Economics Finance
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Question added by Sultan Alghamdi
Date Posted: 2016/02/14
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Juliet Sumakote CPA
by Juliet Sumakote CPA , Trade Settlement Accountant , Petrochina International (Middle East) Company Ltd

because there might be a general sources which should be allocated properly to correctly compute the return on investment for the said project(long term).

 

also some of the specific sources might loan from the company itself coming from the operations or from working capital.

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