Operating Leverage Is Concerned with the Use of Capital Assets

question 91

True/False

Operating leverage is concerned with the use of capital assets in the business.

---

Definitions:

Capital Balances

The amount of equity ownership a partner has in a partnership or an investor has in a company.

Noncash Assets

Assets that are not in the form of cash or currency, including tangible assets like property, plant, and equipment, and intangible assets like patents and copyrights.

Distribution

The process of making a product or service available for the consumer or business user.

Statement of Members' Equity

A financial document that shows the changes in the equity of a company's members or owners over a specific period.