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:

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, regulating the passage of substances in and out of the cell.

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, excluding the nucleus, containing organelles and the site of most cellular activities.

Lactate

A compound produced in the body during the anaerobic conversion of glucose to energy, often associated with muscle fatigue.

NAD+

Nicotinamide adenine dinucleotide, a coenzyme found in all living cells that is involved in redox reactions, carrying electrons from one reaction to another.