Accounting Dictionary


Borrowing money to finance your business.

John needed $100,000 to start his business. He borrowed $95,000 of that money. His business is highly leveraged. With only $5000 of his own money he has an opportunity to make a lot of money. If he doesn’t make money and can’t repay his loans, his creditors may try to get some of their money back by forcing him into involuntary bankruptcy. Mary needed $100,000 to finance her business. She borrowed $2000. Her business is not highly leveraged. She needed a lot more of her own money but if the business has a bad year she can try again next year because her creditors will not force her into bankruptcy over a $2000 debt.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top
Get Your eBook Today!

Fill out this form to have our eBook sent directly to your email address.

Access Until You Pass

The Elite-Unlimited course provides UNLIMITED continuing access to your course materials until you pass the CPA Exam! How does it work? Upon activating your course, you will have an initial 36 months of access. You can then renew your subscription as many times as you need to pass your exams—for FREE. Simply click the “renew” option in your student account and you can continue studying your high-quality course materials without losing any of your data and course progress.

Renewal Instructions

  •   Please purchase a renewal using the "Renew" option from the My Account page
  •   To qualify for renewal pricing, course must be renewed before it expires
  •   All renewals are effective from the current expiration date and cannot be deferred
  •   Test information cannot be reset (deleted) with renewal unless eligibility criteria is met (see Help page)