Which of the following refers to funding activities with borrowed money?
A) ROA
B) Leverage
C) Liquidity
D) Profitability
E) Activity

Question

Quizplus · Accepted Answer

Leverage refers to funding activities with borrowed money. The other options are unrelated to borrowing and funding activities. ROA (return on assets) measures how efficiently a company uses its assets to generate profit, liquidity refers to a company's ability to meet short-term obligations, profitability measures a company's ability to generate profits, and activity refers to the level of business operations undertaken by a company.

Which of the Following Refers to Funding Activities with Borrowed