________ Is the Technique of Increasing the Rate of Return

question 97

Multiple Choice

________ is the technique of increasing the rate of return on an investment by financing it with borrowed funds.

• A) Returns projection
• B) Budgeting
• C) Leverage
• D) Forecasting
• E) Financial projection

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Definitions:

Balance Sheet

A financial outline that displays a company's assets, financial obligations, and the ownership interest of shareholders at a determined date.

Net Income

The total profit of a company after subtracting all expenses, taxes, and costs from total revenue.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity, including issuing debt, equity, and paying dividends.

Cash Flows

The sum of funds entering and exiting a company, particularly influencing its liquid assets.