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If the economy is growing, firms with high operating leverage will experience A. higher increases in profits than firms with low operating leverage. B. smaller increases in profits than firms with low operating leverage. C. no change in profits. D. similar increases in profits as firms with low operating leverage.

Respuesta :

The correct answer is option A.

Firms with high operating leverage will experience Higher increase in profits than firms with low operating leverage.

What is financial accounting?

  • In order to provide financial statements that both internal and external shareholders may use to judge a company's financial soundness, financial accounting focuses on documenting, evaluating, and reporting on a company's business transactions.
  • Investors and organizational executives can evaluate a company's financial health and general performance using financial statements.
  • This means that establishing business objectives, monitoring financial performance, and allocating resources to internal departments and professionals all depend on financial accounting and the accounts it generates.
  • Statements adhere to the criteria and rules established by the International Financial Reporting Standards (IFRS).

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