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30 July, 17:07

Which of the following is not considered a part of the firm's capital structure?

A. Longminusterm debt

B. Retained earnings

C. Inventory

D. Preferred stock

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Answers (1)
  1. 30 July, 20:30
    0
    C. Inventory

    Explanation:

    A mixture of debt and equity is the capital structure. The debt is a loan containing long-term debt or bond issuance, while the equity comprises common stock, preferred stock, and retained earnings. The liabilities hand of the balance sheet displays the debt and equity

    While the inventory is a current asset that is expressed in the balance sheet asset side. Because this is a current asset that is turned into cash in less than a year.
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