Financial Leverage
The use of borrowed funds to increase the potential return on investment. While leverage can amplify profits, it also magnifies losses if returns fail to exceed interest costs. Accountants track leverage ratios to assess a company’s risk exposure and ability to service its debt obligations effectively.
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Finance Charge
The total cost incurred for borrowing money or using credit. It includes interest, service fees, and other related costs. In…
Fixed Deposit
A financial instrument offered by banks where a sum of money is invested for a fixed term at a predetermined…
Foreign Exchange Gain or Loss
The financial impact resulting from changes in currency exchange rates during international transactions. When exchange rates fluctuate between the transaction…
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