A951 a Firm's Degree of Combined Leverage Can Be Measured

question 145

Multiple Choice

A9.51 A firm's degree of combined leverage can be measured as degree of operating leverage __________ the degree of financial leverage:

• A)plus
• B)minus
• C)times
• D)divided by

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Definitions:

Note Collected

The action of receiving payment or settling a promissory note, where one party pays the amount owed to another.

Bank Service Charges

Fees charged by a bank for the handling of accounts, provision of services, or the execution of transactions.

Journal Entries

The basic method of recording financial transactions in the accounts of a business using a double-entry bookkeeping system.

Cash Sales

Transactions where payment is made in cash at the time of sale, immediately impacting a company's cash balance.