The "Capital Structure" of the Firm Consists of Long-Term Debt

question 52

True/False

The "capital structure" of the firm consists of long-term debt and equity.

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Definitions:

Debit Part

The left side of an accounting entry, which increases assets and expenses and decreases liabilities and equity.

Journal Entry

A recording of a business transaction in an accounting journal, indicating the financial effects of the transaction.

Posting Reference Column

A column in journals or ledgers used to record page numbers or account numbers, facilitating the tracking of transactions.

Ledger

A comprehensive collection of a company's financial accounts, where all transactions are recorded.