A retailer's assets do not fundamentally change if it raises capital through either debt or the issuance of common stock.

Question

Quizplus · Accepted Answer

Raising capital through either debt or the issuance of common stock does not affect a retailer's assets. Debt is a liability that must be repaid with interest, while equity from the issuance of common stock represents ownership in the company. However, both forms of financing do not impact the assets of the retailer.

A Retailer's Assets Do Not Fundamentally Change If It Raises