Tutor profile: Ally B.

How can a customer increase their credit score?

A credit score can typically be increased by taking out a CD secured loan and paying it back over time, keeping credit cards open and established, and paying back debts in a timely manner.

What is the difference between a fixed cost and a variable cost?

A fixed cost will be incurred whether or not a product is made. Variable costs are dependent on the number of products produced.

Of the three main financial statements- balance sheet, profit and loss, and cash flow- which is most important and why?

All three are important for a business to analyze. A Balance Sheet is needed to see where assets are held and the amount of liquidity the business has, as well as what debts will need to be paid. A Profit and Loss Statement is imperative to ensure the business continues to make money. Cash Flow Statements are necessary to make sure there is enough cash to cover debts and help sustain the business.