A Risk of the ________ Financing Strategy Is Unpredictable Interest

question 74

Multiple Choice

A risk of the ________ financing strategy is unpredictable interest expense.

• A) aggressive
• B) conservative
• C) permanent
• D) seasonal

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Definitions:

Capital Account

A capital account tracks the net value of a company's assets contributed by its owners and investors plus retained earnings or minus any distributions to owners.

Ending Capital Balance

The amount of money that a company or individual has in their capital account at the end of a fiscal period, after all transactions have been accounted for.

Net Purchases

The total amount of purchases after subtracting any purchases returns, allowances, and discounts.