Companies need to finance their business plans. In order to finance them, the company can either go for debt or issue shares or issue bonds to get the required investment. Debt can be in the form of loans where as common stock is issued to give share in the company to the stockholders.
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
Consumer debt is governed by the FDCPA....commercial debt is not.
loan is money borrowed and debt is money owed. :-)
stock subscription payables is debt ?
A debt is something you owe someone, a loan is something you borrow
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
Equity is bought and sold in the stock market while debt is bought and sold in the bond market.
Debit the liability (debt) account and credit Common Stock (for the par value of the shares) and Additional Paid in Capital (for the balance).
True
Capital Structure vs Financial Structure• 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.• Capital structure is thus a subset of financial structure of a company.
Capital Structure vs Financial Structure• 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.• Capital structure is thus a subset of financial structure of a company.
Consumer debt is governed by the FDCPA....commercial debt is not.
loan is money borrowed and debt is money owed. :-)
stock subscription payables is debt ?
A debt is something you owe someone, a loan is something you borrow
The only difference between the 2 is that a stock represents ownership and a bond is a long term debt. You will be paid via stocks but only receive interest from bonds.
There is a subtle difference between debt settlement and bankruptcy. Debt settlement allows a person to pay off some of their debt with their creditors. Bankruptcy claims do not result in payment of the debt. Either practice creates bad credit scores for the consumer.