What are the fundamental accounting issues associated with financing activities? Financing activities for corporations involve issuing debt

Question:

What are the fundamental accounting issues associated with financing activities?
Financing activities for corporations involve issuing debt and stock. These activities provide financial resources for the to grow. Debt has to be repaid along with interest. Stockholders expect dividends or increases in stock prices resulting from profits earned by the How do managers decide how much of their financing should come from debt and how much from equity? What effect does the mix of debt and equity have for a corporation’s profits and risk?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...