Question

Match the following terms:1. The mix of accounts/itAsset Structure 2. The mix of all accounts/items on the right hand side of the balance sheet 3. The mix of longer term items on the right side of the balance sheet explicitly used to fund the corporation 4. The ratio of debt to total assets A. Leverage B. Capital Structure C. Financial Structure D. Asset Structure

Answer 1

Matching terms:

1. The mix of accounts/Asset Structure

D. Asset Structure

2. The mix of all accounts/items on the right hand side of the balance sheet

C. Financial Structure

3. The mix of longer term items on the right side of the balance sheet explicitly used to fund the corporation:

B. Capital Structure

4. The ratio of debt to total assets:

A. Leverage

Step-by-step explanation:

Options and definitions:

A. Leverage: the amount of debt a firm uses to finance its assets.

B. Capital Structure: the combination of long-term debt and equity.

C. Financial Structure: the mix of all of a company's liabilities and its equities.

D. Asset Structure: the distribution of a firm's asset base in different asset categories, like buildings, plant, and equipment.