All items on the right-hand side of a firm's balance sheet, excluding current liabilities are sources of capital.

Question

Quizplus · Accepted Answer

This is true. Items on the right-hand side of a balance sheet, such as long-term debt, equity, and retained earnings, represent sources of capital for a firm. However, current liabilities on the right-hand side are not considered sources of capital since they are expected to be paid off within one year.

All Items on the Right-Hand Side of a Firm's Balance