Based on the Above Data,which Company Has a Higher Operating

question 138

Multiple Choice

Based on the above data,which company has a higher operating leverage?

• A) Gable,Inc.
• B) Harlowe,Inc.
• C) Operating leverage is the same for both companies
• D) Cannot be determined

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Definitions:

Reported

Refers to information or data that has been officially announced or presented.

Matching Principle

An accounting principle that states expenses should be recognized in the same period as the revenue they helped generate.

Recorded

The act of entering financial transactions or information into accounting records.

Adjusting Entries

Entries made in the accounting records at the end of an accounting period to allocate incomes and expenses to the period in which they actually occurred.