Which of the Following Is Not True About Leverage

question 1

Multiple Choice

Which of the following is not true about leverage?

• A) Operating leverage influences the top half of the income statement,determining EBIT.
• B) Financial leverage deals with the bottom half of the income statement,determining EPS.
• C) Combined leverage utilizes the entire income statement,showing the impact of change in volume on EBIT.
• D) Combined leverage utilizes the percentage change in EPS and percentage change in sales.

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Definitions:

Genetic Code

The set of rules by which information encoded in genetic material (DNA or RNA sequences) is translated into proteins by living cells.

Dizygotic Twins

Also known as fraternal twins, are siblings born at the same time who have developed from two different eggs fertilized by two different sperm.

Secondary Sexual Characteristics

Physical traits that are not directly involved in reproduction but distinguish the two sexes, such as breast development in females and facial hair in males.

Hormones

Hormones are chemical messengers produced by the endocrine glands that regulate various functions in the body, from growth and metabolism to mood and reproduction.