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:

Racial Categorization

The process of classifying people into groups based on physical characteristics, often leading to societal implications and stereotypes.

Homogenizing Headings

Refers to the process of making headings consistent in style or format across a document or group of documents.

Dominant

Holding a position of power, influence, or control in a particular society, culture, or group.

Whiteness

A socio-political concept referring to the social, economic, and political advantages that come with being identified as white in many societies.