Which One of the Following Would Be Considered a Leverage

question 51

Multiple Choice

Which one of the following would be considered a leverage ratio?

• A) accounts receivable turnover
• B) return on total assets
• C) quick ratio
• D) debt ratio

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Definitions:

Unit Sales Price

The amount that a business charges for one unit of its product or service.

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Cost Element

A cost that varies directly with the level of production or sales volume, such as materials and direct labor.

Fixed Cost Element

The portion of total costs that does not change with the variation in activity level or production volume.