One of the Better Criteria Used to Determine an Applicant's

question 6

Multiple Choice

One of the better criteria used to determine an applicant's stability of income is

• A) the amount of income in excess of that needed for approval
• B) the record of payment to other creditors
• C) the length of time on the job
• D) whether or not more than one applicant is liable

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Definitions:

Net Cash Flow

The measure of a company's financial health, showing the cash generated or used in its business activities during a specific timeframe, restated to avoid repetition.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Net Income After Taxes

The profit a company retains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.