What information would a financial institution contemplating giving a loan to an entity be most interested in?
A)profitability
B)cash flow
C)none of the options is correct
D)turnover of debtors

Question

Quizplus · Accepted Answer

A financial institution would be most interested in the cash flow of an entity, as this indicates the ability of the entity to generate enough money to repay the loan. Profitability and turnover of debtors are also important factors, but cash flow is most relevant to the loan repayment ability.

What Information Would a Financial Institution Contemplating Giving a Loan