The More ________ Used,the Greater the Leverage a Company Employs

question 111

Multiple Choice

The more ________ used,the greater the leverage a company employs on behalf of its owners.

• A)debt
• B)equity
• C)debt and equity
• D)All of these

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable amount within a given period.

Selling Inventory

Selling inventory consists of the process in which businesses sell their stocked goods or merchandise to customers.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue.

Net Sales

Net Sales is the amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.