Examlex
The use of debt finance by a company (gearing) has a potential impact on which of the following?
Account Payables
The obligations of a business to pay off short-term debts to its creditors or suppliers, typically recorded as liabilities on the balance sheet.
Average Collection Periods
The average amount of time it takes for a business to collect payments owed by its customers, indicating the efficiency of the company’s credit and collection policies.
Credit-Granting Policies
Credit-granting policies are the guidelines a business follows in determining who qualifies for credit, how much credit is offered, and under what terms.
Return On Equity Ratio
A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.
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