The Following Accounts and Balances Are Taken from Jenny Company's

question 81

Multiple Choice

The following accounts and balances are taken from Jenny Company's adjusted trial balance: In the closing process,which accounts are debited?

• A)Accounts Payable,Retained Earnings
• B)Service Revenue,Interest Revenue
• C)Depreciation Expense,Insurance Expense,Salary Expense
• D)Depreciation Expense,Insurance Expense,Salary Expense,Dividends

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Definitions:

EBIT

Profitability metric that disregards interest and income tax expenses, known as earnings before interest and taxes.

Homemade Leverage

The use of personal borrowing to change the overall amount of financial leverage to which an individual or business is exposed.

Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Levered Cost of Capital

The cost of capital for a company that has debt in its capital structure, reflecting the additional risk introduced by the use of debt.