Which of the Following Statements Is True for Leverage

question 104

Multiple Choice

Which of the following statements is true for leverage?

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

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Definitions:

India

A country in South Asia, known for its diverse geography, cultural heritage, and as the world's largest democracy by electorate.

Mexico

A country in North America, known for its rich cultural heritage, diverse landscapes, and as the largest Spanish-speaking population.

Philippines

A Southeast Asian country composed of more than 7,000 islands, known for its biodiversity, cultural diversity, and vibrant economy.

China

A country located in East Asia, known for being the world's most populous nation and having one of the largest economies globally.