Determining How a Firm Should Raise Money to Fund Its

question 35

True/False

Determining how a firm should raise money to fund its long-term investments is referred to as capital structure decisions.

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Definitions:

Operating Activities

These involve the primary, day-to-day activities of producing goods or providing services, which generate most of the company's revenue.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the company, representing a liability on the balance sheet.

Short-Term Lease

A lease for 12 months or less (including expected renewals and extensions) that does not contain a purchase option that the lessee is expected to exercise.

Lease Liability

An obligation representing future lease payments owed by a lessee under the terms of a lease agreement.