1. using borrowing funds to generate additional profits for shareholders is referred to as:

a. liquidity management

b.operational expansion

c. capital budgeting

d. financial leverage

2. A company that borrows funds at 6% and then generates a return on those funds at 9% typically has:

a. greater default risk

b. favorable financial leverage

c. higher return on equity

d.all ture

3.whichof the following features is typical of a balance sheet prepared under IFRS?

a. a shareholders' equity section often is not included

b. assets often are listed after liabilities

c. long-term item often are listed before current items.

d. assets sometimes do not equal liabilities plus shareholders' equity