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Optimal Capital Structure,or Debt Capacity,is the Debt-Equity Mix That

question 66

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Optimal capital structure,or debt capacity,is the debt-equity mix that:

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Definitions:

Permanent Account Balances

Permanent account balances are those balances in accounts that are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Post-closing Trial Balance

A listing of all permanent accounts and their balances after closing entries have been made, serving as a check to ensure that debits equal credits.

Accounting Period

A specific time frame for which financial information is reported, usually a fiscal year or quarter.

Accounting Cycle

The complete set of accounting procedures from recording transactions to preparing financial statements within a specific period.

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