MANAGEMENT

Detailed explanation-1: -With direct deposit, an employer transfers net pay electronically into an employee’s bank account. The net income ratio will show the rate of return the owners are getting on the money they invested in the company. Managers are usually held accountable if their part of the company faces financial problems.

Detailed explanation-2: -As it applies to employment, direct deposit is the electronic transfer of net pay from an employer’s financial institution to an employee’s personal bank account. This exchange takes place across a network called the Automated Clearing House (ACH).

Detailed explanation-3: -A cash flow statement shows the exact amount of a company’s cash inflows and outflows over a period of time. The income statement is the most common financial statement and shows a company’s revenues and total expenses, including noncash accounting, such as depreciation over a period of time.

Detailed explanation-4: -The leverage ratio category is important because companies rely on a mixture of equity and debt to finance their operations, and knowing the amount of debt held by a company is useful in evaluating whether it can pay off its debts as they come due.

Detailed explanation-5: -The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company’s financial strength and provide a quick picture of a company’s financial health and underlying value.