Which of the Following Statements Is True for Leverage

question 15

Multiple Choice

Which of the following statements is true for leverage?

• A)Assets turnover ratio measures financial leverage.
• B)Leverage always increases profitability.
• C)Leverage is shown in proportion of total assets relative to total equity.
• D)Higher the debt ratio, higher the leverage.

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Definitions:

Sodium Methoxide

A strong base and nucleophile used in organic synthesis, made by reacting sodium with methanol.

Major Alkene Product

The predominant alkene formed in a reaction, determined by factors like the stability of the resulting molecules or the mechanism of the reaction.

Alkene Products

Chemical substances resulting from reactions involving alkenes, which are hydrocarbons with at least one carbon-carbon double bond.

Predominate

To be the strongest or main element; to have a commanding or dominant position.