Which of the following factors is most important in investment decisions?
A)the change in earnings before taxes
B)the change in gross sales revenue
C)the change in net income
D)the change in cash flow

Question

Quizplus · Accepted Answer

The change in cash flow is the most important factor in investment decisions because it directly measures the cash generated by the investment and reflects the company's ability to generate cash and sustain its operations in the long term. Earnings before taxes, gross sales revenue, and net income are important indicators of a company's financial performance, but they do not directly measure the cash generated by the investment.

Which of the Following Factors Is Most Important in Investment