An Account's Balance Is the Difference Between the Total Debits

question 161

True/False

An account's balance is the difference between the total debits and total credits for the account, including any beginning balance.

---

Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake.

Debt

A sum of money lent by one party to another, with the agreement it will be repaid later, typically with additional interest.

Financial Leverage

Taking advantage of borrowed finances to raise the possible outcomes of an investment.

Business Risk

The exposure a company or investor has to factor(s) that will lower its profits or lead to a loss.