Which of the following is not a source of financial leverage?
A) Bonds payable.
B) Accounts payable.
C) Taxes payable.
D) Prepaid rent.

Question

Quizplus · Accepted Answer

Prepaid rent is not a source of financial leverage as it is considered a current asset and represents a payment made in advance for a future expense. Both bonds payable and accounts payable involve borrowing money to be paid back over time, while taxes payable represent a liability for taxes owed to the government.

Which of the Following Is Not a Source of Financial