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    Intermediate Accounting Study Set 6
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    Exam 14: Long-Term Liabilities and Receivables
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    Leverage Occurs When a Company's
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Leverage Occurs When a Company's

Question 40

Question 40

Multiple Choice

Leverage occurs when a company's


A) interest payments exceed its rate of return
B) rate of return equals its interest payments
C) rate of return exceeds its interest payments
D) interest payments are made on time

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