The Firm's Capital Structure Refers to The

question 67

Multiple Choice

The firm's capital structure refers to the:

• A)mix of current and fixed assets a firm holds.
• B)amount of capital invested in the firm.
• C)amount of dividends a firm pays.
• D)mix of debt and equity used to finance the firm's assets.
• E)amount of cash versus receivables the firm holds.

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Definitions:

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.

Withheld FICA Taxes

Taxes deducted from employees' paychecks to fund Social Security and Medicare, which employers also match.

Net Pay

The amount of money an employee takes home after deductions such as taxes and retirement contributions have been subtracted from their gross salary.

Voluntary Deductions

These are payroll deductions that an employee chooses to have withheld from their paycheck, such as for retirement plans, health insurance, or union dues.