The Basic Measure of the Amount of Leverage Being Applied

question 24

Multiple Choice

The basic measure of the amount of leverage being applied within the capital structure of an organization is the:

• A)Interest coverage ratio.
• B)Debt ratio.
• C)Return on assets.
• D)Return on equity.

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Definitions:

Land Improvements

Enhancements made to land such as landscaping, driveways, and fences that increase the property's value.

Buildings

Refers to permanent structures owned by a company and used for business operations, considered as tangible fixed assets on the balance sheet.

Land Improvements

Enhancements made to a piece of land to increase its value, such as landscaping, fencing, and adding utilities.

Modifying

The act of making changes or alterations to something, often to improve it or adjust it to different conditions or uses.