The term "capital structure" refers to:
A)the amount of current versus long-term debt on the balance sheet.
B)the amount of current versus fixed assets on the balance sheet.
C)the amount of long-term debt versus equity on the balance sheet.
D)none of these.

Question

Quizplus · Accepted Answer

Capital structure refers to the way a company finances its operations by using different types of debt and equity. It refers to the mix of long-term debt and equity on the balance sheet, not current versus long-term debt or current versus fixed assets. D is also incorrect as capital structure is a valid financial term.

The Term "Capital Structure" Refers To