Which of the Following Statements Is True for Financial Leverage

question 50

Multiple Choice

Which of the following statements is true for financial leverage?

• A) The asset turnover ratio measures financial leverage.
• B) Financial leverage always increases profitability.
• C) Financial leverage is measured in the proportion of total assets relative to total equity.
• D) The higher the debt to equity ratio, the higher the financial leverage.

---

Definitions:

Alcohol Addiction

is a chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, where an individual is unable to manage their drinking habits.

Neurotransmitter

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another.

Reabsorption

Reabsorption is a biological process in which substances are taken back into the body's tissues, particularly referring to the recovery of water and solutes during filtration in the kidneys.

Dopamine

A neurotransmitter in the brain that plays a critical role in reward, motivation, and pleasure.