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What is the difference between Capital Structure and Financial Structure?

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Question added by Anil Lalwani , Chief Accountant , Al Ahli Hospital
Date Posted: 2016/10/29
manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

Financial structure refers to the balance between all of the company's liabilities and its equities. It thus concerns the entire "Liabilities+Equities" side of the balance sheet. Capital structure, by contrast, includes equities and only the long term liabilities

Wilfredo Quito
by Wilfredo Quito , Accounting Manager , DDC LAND INC.

I agree with previous answer: Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.

Financial structure on the other hands also includes short term debt and accounts payable.

 

 

 

Soliman Abd  ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

--A financial structure is a combination of both long& short term,and  it represents the financial structure of the company.-

-A capital structure is subdivision  of financial structure.also it's a combination of long term sources of funds which are raised by the business.

Alfred Jr. Santamaria
by Alfred Jr. Santamaria , State Auditor , Commission on Audit

I agree with the previous answer thus, capital structure is just a subset of financial structure.

Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

Capital structure contains the equity & long term liabilities whereas the financial structure is composed of the equity plus all the liabilities.

Muhammad Jalil Inayatullah
by Muhammad Jalil Inayatullah , Senior Accounts Officer , Raptor Global Logistics (Pvt) Ltd

Thanks for invitation.

 

I agree with all previous answers.

Capital Structure is one How a Capital of a company formed by financing its capital.share capital.Financial Strucute is how the company is financed not only for its Capital and also for it OperationsLong term Loan,short temr finance and Operational Finance generated by the company Long term Loan itself does not form of capital as it has to be repaid in a period of time so its forming part of Financial Structure

Ahmed mohsen
by Ahmed mohsen , Senior Accountant , Main Poly Clinic

Capital Structure:The combination of long term sources of funds, which are raised by the business.Appear on Balance SheetUnder the head Shareholders fund and Non-current liabilities.

The capital structure is a section of financial structure.

 Financial Structure:The combination of long term and short term financing represents the financial structure of the company.

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