What structure(s)is considered a component of the financial structure of an entity?
A) Capital structure
B) Asset structure
C) Both A and B
D) Neither A nor B

Question

Quizplus · Accepted Answer

The financial structure of an entity consists of both its capital structure (which refers to the mix of different types of funding such as equity, debt, or hybrid securities) and its asset structure (which refers to the composition of its assets such as cash, inventory, property, and equipment). Both of these components are essential elements of an entity's financial structure as they determine its financial stability, liquidity, and profitability.

What Structure(s)is Considered a Component of the Financial Structure of an Entity