Leverage dictionary definition
It's the borrowing of funds to finance the purchase of inventory, equipment, and other company assets. Business owners can use either debt or equity to finance or buy company assets. Using debt increases the company's risk of bankruptcy but can also ...
How to Determine the Unit Sold From Inventory
Operating income excludes items such as investments in other firms (non-operating income), taxes, and interest expenses. Also, nonrecurring items such as cash paid for a lawsuit settlement are not included....
What are operating expenses?
Accountants sometimes remove non-operating expenses to examine the performance of the business, ignoring effects of financing and other irrelevant issues. In some cases, non-operating items are referred to as income from secondary activities, while t...