Ask Question
19 May, 05:37

How do debt financing and equity financing affect the balance sheet differently?

+5
Answers (1)
  1. 19 May, 08:49
    0
    Debt financing is paying off debt using another method. Like paying off a house loan by taking out another lower interest loan. Equity financing is taking a loan out of your equity. Such as drawing cash from a house that has equity. Equity financing injects cash into a balance sheet at the expense of future expenses (paying off the equity loan) while debt financing just changes the monthly payments to pay off a given debt.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “How do debt financing and equity financing affect the balance sheet differently? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers