The Decision on Capital Structure Seems to Be Related to the Expected

question 47

Multiple Choice

The decision on capital structure seems to be related to the expected earnings of the company ________.

• A)the less the earnings,the more debt we should sell
• B)the more the earnings,the more debt we should sell
• C)the more the earnings,the less debt we should sell
• D)None of these

Learn to prepare a budgeted income statement incorporating projected sales, costs, and expenses.

Gain proficiency in preparing a budgeted balance sheet, considering projected cash flows, sales, inventory, and debt levels.

Understand the different components of a budget including sales, cash, production, and expense budgets.

Develop an understanding of continuous budgeting and rolling budget concepts.