Cost And Management Accountıng Deneme Sınavı Sorusu #1399409

"Financial leverage......................"

Which of the following best completes the statement above?


pays the suppliers for direct material purchases

creates a cash inflow at the beginning of the year

is adjusted for the net effect of operations on cash flow

is the use of debt in financing the acquisition of new assets

is the desired minimum ending cash amounts when making purchase


Yanıt Açıklaması:

Financial leverage, is the use of debt in financing the acquisition of new assets. By using debt financing, a return that is generated over equity is increased as well as the tax to pay decreases, because of interest expense.

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