Asked by Ranjani Ramaswamy on May 07, 2024
Verified
Leverage is the use of equity financing.
Leverage
The use of borrowed capital or financial instruments to increase the potential return of an investment.
Equity Financing
The process by which a company raises capital through the sale of shares.
- Comprehend the sorting and influence of various accounting practices and theories on financial documentation.
Verified Answer
SP
Savannah PetersenMay 14, 2024
Final Answer :
False
Explanation :
Leverage is the use of debt financing, not equity financing.
Learning Objectives
- Comprehend the sorting and influence of various accounting practices and theories on financial documentation.
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