A Change in the Company's Capital Structure Will Change the Amount

question 77

True/False

A change in the company's capital structure will change the amount of taxes paid but will not change the WACC.

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Definitions:

Revenue Recognition

The accounting principle that deals with the conditions under which revenue is recognized and recorded on the financial statements.

Installment Method

An accounting method used to recognize revenue and expenses on long-term contracts and other sales where payment is received in installments.

Qualitative Characteristic

Features or attributes that describe the non-numeric aspects of goods, services, processes or information, often related to quality.

Reliability

The quality or state of being dependable or consistent in performance or outcome.