Which of the following is NOT a potential source of financial leverage?
A) Bonds payable.
B) Accounts payable.
C) Preferred shares.
D) Retained earnings.

Question

Quizplus · Accepted Answer

Retained earnings are a form of internal financing and not considered a source of financial leverage. The other options listed all involve external financing and can increase a company's leverage ratio.

Which of the Following Is NOT a Potential Source of Financial