One component of a firm's financial structure which is not a component of its capital structure is:
A) common stock.
B) accounts payable.
C) long-term debt.
D) preferred stock.

Question

Quizplus · Accepted Answer

Accounts payable are a liability that is part of a firm's financial structure, but not considered to be part of its capital structure. Capital structure refers to the permanent long-term financing of a company, such as equity and debt, while financial structure includes both permanent and short-term financing, such as accounts payable and short-term borrowings. Common stock, preferred stock, and long-term debt are all components of a firm's capital structure.

One Component of a Firm's Financial Structure Which Is Not