________ Leverage Is Concerned with the Relationship Between Sales Revenues

question 164

Multiple Choice

________ leverage is concerned with the relationship between sales revenues and earnings before interest and taxes.

• A) Investing
• B) Operating
• C) Variable
• D) Total

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Definitions:

Equipment

Tangible, long-term assets used in the operations of a business, not intended for sale.

Supplies

Supplies are consumable items used in the everyday operations of a business, such as office materials, that are not resold to customers.

Open Account

a method of credit where the seller ships goods or provides services to a buyer under an agreement to bill them later or on a recurring basis.