Liability Management Decisions Determines All of the Following except

question 20

Multiple Choice

Liability management decisions determines all of the following except:

• A) interest expense on borrowed funds.
• B) check handling costs.
• C) personnel costs.
• D) fee income.
• E) loan rates.

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Definitions:

Net Profit Margin Percentage

A financial metric expressing the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activity.

Net Operating Income

The profit generated from a company's operational activities, excluding taxes and interest.

Return on Total Assets

Return on Total Assets (ROTA) is a financial ratio that measures a company's profitability relative to its total assets.