FINANCIAL LEVERAGE Definition

Bookmark and Share

FINANCIAL LEVERAGE is the use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity.

Learn new Accounting Terms

ADDITIONAL PAID IN CAPITAL is the amounts paid for stock in excess of its par value; included are other amounts paid by stockholders and charged to equity accounts other than capital stock.

OPENING BALANCE is the balance of an account at the start of an accounting period.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.