The Rocky Company Reports the Following Data: Rocky Company's

question 225

Multiple Choice

The Rocky Company reports the following data: Rocky Company's operating leverage is

• A)6.7
• B)2.7
• C)1.0
• D)1.3

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Definitions:

Assets

Resources owned by a business with future economic benefits.

Investments

The balance sheet caption used to report long-term investments in stocks not intended as a source of cash in the normal operations of the business.

Cash

Money in the form of currency or coins, readily available for transactions.

Prepaid Expenses

Expenses paid in advance for a benefit yet to be received, recorded as assets on the balance sheet.