- CFA Exams
- CFA Exam: Level II 2021
- Study Session 7. Corporate Finance (1)
- Reading 20. Capital Structure
- Subject 1. Capital structure irrelevance theory
CFA Practice Question
Which of the following refers to capital structure?
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.
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. |