Important terms to know Flashcards
1
Q
Capital structure
A
The combination of debt + equity used by a company to finance its overall operations and growth
2
Q
Current assets
A
An account listed on a balance sheet, showing the value of the assets owned which can be converted to cash through liquidation, use or sales within one year.
3
Q
Long-term assets
A
Assets with a useful life of more than a year
4
Q
Long-term debt
A
Any amount of outstanding debt which has a maturity of 12 months or longer. a non-current liability.
5
Q
Working capital (aka net working capital) (NWC)
A
Current assets(cash accounts, receivables, stock) - current liabilities(accounts payable and debt)
