CFA Practice Question

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CFA Practice Question

Which of the following refers to capital structure?

A. the amount of long-term debt and equity a firm has on its balance sheet.
B. the amount of short-term assets and short-term liabilities a firm has on its balance sheet.
C. the mixture of short-term and long-term debt a firm uses to finance its operations.
Correct Answer: A

User Contributed Comments 2

User Comment
setmefree so that short term debt and equity levels are irrelevant in firm's capital structure?
danlan2 "A firm plans to maintain over time" means long-term.
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