Financial Leverage Definition
Financial Leverage Definition is the degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt , they may also be unable to find new lenders in the future.
Financing Activities Definition: All transactions (other than payment of interest) involving borrowing from creditors or repaying creditors as well as transactions with the company’s owners (except stock dividends and stock splits). Relevant terms: Cash flow statement Operating activities Investing activities Cash equivalents
Financial Leverage Definition: Acquiring assets with funds that have been obtained from creditors or from preferred stockholders at a fixed rate of return. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download