Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following refers to the amount of debt versus equity a firm has on its balance sheet?

Capital structure

Contingent liabilities

Current liabilities

Working capital

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Verified step by step guidance

Understand the term 'Capital Structure': It refers to the mix of debt and equity financing a company uses to fund its operations and growth. This is a key concept in financial accounting and corporate finance.

Review the other options provided: 'Contingent liabilities' are potential obligations that may arise depending on the outcome of a future event. 'Current liabilities' are short-term obligations due within a year. 'Working capital' is the difference between current assets and current liabilities, representing liquidity.

Compare the definitions: The term 'Capital Structure' specifically addresses the proportion of debt versus equity on a firm's balance sheet, which is distinct from the other options.

Relate the concept to the balance sheet: On the balance sheet, debt is typically listed under liabilities, while equity is listed under shareholders' equity. The capital structure is derived from these sections.

Conclude the reasoning: Based on the definitions and the context of the question, the correct answer is 'Capital Structure,' as it directly refers to the amount of debt versus equity a firm has on its balance sheet.