A Company That Is Leveraged Is One That

question 13

Multiple Choice

A company that is leveraged is one that

• A)contains debt financing.
• B)contains equity financing.
• C)has a high earnings per share.
• D)has minimized its risk of loss by acquiring a portfolio of investments.

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Definitions:

Investments

Investments refer to assets or items acquired with the intention of generating income or appreciating in the future.

Trial Balance Totals

The cumulative sum of all debits and credits in a trial balance, which should equal to ensure the ledger is balanced.

Normal Balances

The side (debit or credit) of an account that is expected to have a positive balance.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including the balance sheet, income statement, and statement of cash flows.