Ask Question
Yesterday, 23:55

How do debt financing and equity financing affect the balance sheet differently?

+4
Answers (1)
  1. Today, 03:20
    0
    Debt financing is paying off debt using another method. Like paying off a house loan by taking out another lower interest loan. Equity financing is taking a loan out of your equity. Such as drawing cash from a house that has equity. Equity financing injects cash into a balance sheet at the expense of future expenses (paying off the equity loan) while debt financing just changes the monthly payments to pay off a given debt.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “How do debt financing and equity financing affect the balance sheet differently? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers