A Company Has Net Income of $43,560 with a Net

question 84

Multiple Choice

A company has net income of $43,560 with a net cash flow from operating activities of $91,476 and a net increase in cash of $84,942. The company paid $33,524 for income taxes and $25,000 for interest during the year. The company's quality of income ratio is:

• A) 2.1.
• B) 1.1.
• C) 1.95.
• D) 0.48.

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Definitions:

Profit

The profit achieved when the revenue from a business activity surpasses all associated expenses, costs, and taxes required for that activity.

Ethical Climate

The moral atmosphere of a business environment, defined by the company's policies, practices, and behaviors that influence ethical decision-making.

Donates

The act of giving or contributing something, such as money, goods, or time, voluntarily to a cause, organization, or individual in need.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, often by engaging in sustainable practices.