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    Accounting Study Set 3
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    Exam 25: Analysis and Interpretation of Financial Statements
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    The Use of Borrowed Funds in an Attempt to Earn
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The Use of Borrowed Funds in an Attempt to Earn

Question 36

Question 36

Multiple Choice

The use of borrowed funds in an attempt to earn a return greater than the cost of borrowing is known as:


A) gearing or leverage.
B) capital budgeting.
C) equity funding.
D) overdraft financing.

Correct Answer:

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