Which of the following is NOT a component of a firm's capital structure?
A) Preferred stock
B) Bonds
C) Common stock
D) Accounts payable
E) Retained earnings

Question

Quizplus · Accepted Answer

Accounts payable is a liability that is not considered a component of a firm's capital structure. Capital structure mainly consists of long-term sources of financing such as equity (common and preferred stock) and debt (bonds) as well as any accumulated earnings (retained earnings) that the company has not paid out as dividends.

Which of the Following Is NOT a Component of a Firm's