The term capital structure refers to_______   O a. Long-term debt, preferred stock, and common stock equity   O b. Current assets and current liabilities   O c. Shareholders' equity   O d. Total assets minus liabilities

Q: a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders equity

A: a. Ratio of fixed assets to long-term liabilities  Fixed assets / Long-term liabilities = $793,900 /…

Q: Accounts payable Income tax payable Other liabilities Total liabilities Common stock Retained…

A: >Financial Statements are prepared at the end of accounting period, and these include: #1:…

Q: A common-size balance sheet shows the firm's assets and liabilities as a percentage of ____.   a.…

A: Balance sheets are shown in different ways. One is common size

Q: In which of the following financial statements will "changes in working capital" be reported? O A.…

A: Working capital is the amount of capital available with the firm which is used for day to day…

Q: Which ratio indicates the proportion of assets financed out of shareholders’ funds? (A) Debt equity…

A: Introduction: Any person, organization, or institution that owns stock in a company is a…

Q: Account for the issuance of capital stock.

A: Hey there ! since the requirement part is missing, it is assumed to be a recording of journal entry.

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: In a balance sheet, the total of common stock and retained earnings are denoted as Select one: a.…

A: Equity means the amount which is due to the owner of the company i.e. common stock in case of…

Q: 1. Included in the statement of stakeholder earuity are A assets, income, and exchenses. 16) Net…

A: As per the guidelines, only one question is allowed to be solved so I am answering the first…

Q: Income Statement Stmt of Stockholders Balance Sheet Equity

A: Finalisation of Accounts It  prepares  profitability statement and balance sheet at the end of that…

Q: The relative proportion of debt, equity, and other securities that a firm has outstanding constitute…

A: Capital structure refers to the amount of money invested in a busines. this amount of money can be…

Q: The group's debtors are equity stockholders."  explain

A: Characteristics of Equity shareholders are as follows: Equity shareholders are permanent in nature…

Q: Operating activities are most closely related to a. long-term assets. b. current assets and current…

A: Operating Activities: Operating activities refer to those daily activities of the company involved…

Q: Capital Structure components Debt (K) Weighted Cost Total Cost Weights 3.05 25% Common shares (K.)…

A: Weighted average cost of capital is a method of calculating cost of capital in which each category…

Q: M&M Proposition 2 states that the cost of a firm's common stock is directly related to the…

A: solution: As per M&M Proposition 2, the company’s Cost of equity is directly proportional to the…

Q: What are the distributions to the stockholders by a firm called?  A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: Capital structure of a company is more appropriately calculated using the: book value of debt and…

A: Capital structure of a company consists of debt, equity or any other source of finance used to…

Q: The two basic sources of stockholders’ equity are a. assets and equity. b. preferred and common. c.…

A: Stockholder's equity refers to the amount shown for assets after paying all the liabilities and…

Q: Current assets - current liabilities = [A] fixed capital [B] working capital [C] opening capital…

A: Working capital = Current assets - current liabilities Where, Current assets includes: Accounts…

Q: Debt in the capital structure could be treated as if it were common stock in the weighted average…

A: Debt in the capital structure could be treated as if it were common stock in the weighted average…

Q: Define the terms paid-in capital and retained earnings.

A: Paid in capital: Paid in capital represents the total amount invested by the shareholders of the…

Q: What is the difference between a Stock Account and in equity and Paid-in-Capital account? Are they…

A: Step1: Difference between stock account, equity account and paid-in capital account. We have,Stock…

Q: For which of the following balance sheet items will the book value and market value most likely be…

A: The financial statements of a company consists of income statement and balance sheet.  The balance…

Q: a. The rate earned on stockholders' equity % b. The rate earned on common stockholders' equity

A: Rate earned on stockholder’s equity and rate earned on common stockholders are the accounting…

Q: For each item below, indicate to which category of elements of financial statements it belongs. a.…

A: Particulars Category a.    Retained earnings. Equity b.    Sales. Revenue c.    Additional…

Q: Operating activities are most closely related to long-term assets. current assets and current…

A: Operating Activities: Operating activities refer to those daily activities of the company involved…

Q: he primary purpose of the Balance Sheet is to reflect: a. Firm’s potential for growth in stock…

A: Solution: The primary purpose of the Balance Sheet is to reflect " Firm’s resources and how they…

Q: how is additional paid-in capital and common stock figures calculated

A: Additional Paid in Capital - $25,000 is the stock issue costs as given in the Question

Q: or the ratio return on capital employed which of the following best describes capital employed : a-…

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Indicate future earnings Return on common prospects. stockholders' equity Indicate the ability to…

A: Ratios are calculated in order to compare the financial data of the company by analyzing the…

Q: Flowserve converted bonds to common stock. What section in he cash flow statement would this…

A: Cash Flow Statement:- This is a statement prepared by the company in order to check their cash…

Q: The funds supplied and used by the owner of an enterprise in the expectation that a profit will be…

A: A business raises funds from various sources to make investments and finance operations of the…

Q: Stockholders' equity consists of which of the following? Multiple Choice O O Paid-in (or…

A: Stockholders' equity=Paid in capital+Retained earnings

Q: Describe the specific elements of the balance sheet (assets, liabilities, and owners’ equity), and…

A: Balance sheet refers to the financial statements of a company that incorporates assets,liabilities,…

Q: Eaton Electronic Company's treasurer uses both the capital asset of common equity (also referred to…

A: Answer:   Ki = 0.118 or 11.8%

Q: Stock Dividends Distributable is classified on the balance sheet as a(n)(a) asset.(b) liability.(c)…

A: Stock Dividend is a dividend paid to shareholders in the form of additional shares in the company…

Q: Equity is generally classified into two major categories: Select one: a. earned capital and…

A: The equity consists of :   Earned capital: it is the Capital which is earned by company during the…

Q: Do you add or subtract total retained earnings with paid in capital when accounting stock?

A: 1. Retained Earnings - Retained Earnings is the retained accumulated profit of the company over the…

Q: Estimate the costs of different capital components—debt, preferred stock, retained earnings, and…

A: Debt is something that one party borrows from another, usually money. Debt is used to make large…

Q: Equity equals to a) Capital b) Retained Earnings c) Difference between assets and liabilities d)…

A: As per IFRS 9  Financial instruments standard an equity is an residual interest in company assets…

Q: The numerator in the calculation of the ratio of liabilities to stockholders' equity is O a. Total…

A: c. Total Liabilities

Q: Question Capital structure refers to how the firm finances its operations and growth through a…

A: Capital structure is the proportion of capital from different sources of finance in the total…

Q: Which of the following constitutes an internal source of funds Oa. Corporate bonds b. Common stock…

A: A company can generate funds from two sources, i.e., internally and externally. Internal sources of…

Q: Capital structure refers to Select one: a. Total assets minus Liabilities b. Shareholders' equity c.…

A: The capital structure is how a firm utilizes different sources of finance to fund its operations.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.