CAPITAL STRUCTURE Definition

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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.

Learn new Accounting Terms

RETAINED EARNINGS STATEMENT see STATEMENT OF RETAINED EARNINGS.

ACTIVITY RATIO is any accounting ratio that measures a firms ability to convert different accounts within their balance sheets into cash or sales.

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