Financial Options: Intro and Financial/Capital Structure Flashcards
1
Q
Financial Structure and Capital Structure Defined:
A
Financial Structure: The mix of liabilities and owner’s equity accounts of a firm.
BS:
- Current Liab
- Non-current Liab
- Owner’s Equity
- = Financial Structure
Capital Structure: The long-term sources of funding - long-term debt and owners’ equity.
BS:
- Non-current Liab
- Owner’s Equity
- =Capital Structure
