TRANSACTION Definition

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TRANSACTION is an event or happening that changes financial position and/or earnings.

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CAPITAL STRUCTURE refers to the permanent long-term financing of a company. Capital structure normally includes common and preferred stock, long-term debt and retained earnings. It does not include accounts payable or short-term debt.

NET ACCOUNTS RECEIVABLE is equal to total accounts receivable; minus an estimate for amounts the company believes it will never collect.

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