What Section of the Statement of Cash Flows Do Bankers

question 73

Multiple Choice

What section of the statement of cash flows do bankers consider to be the most important?

• A)Investing.
• B)Operating.
• C)Financing.
• D)All the sections are equally important.

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Definitions:

Variable Cost

Expenditures that fluctuate based on production or sales volume, for instance, materials and manpower.

Required Rate

The minimum rate of return on an investment that a manager or investor is willing to accept, considering its risk.

Marginal Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, indicating the rate of tax on any additional income earned.

Fixed Cost

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.