Statement - I : Capital structure refers to composition of long-term funds.
Statement - II : These include equity share capital, preference share capital, debentures, all debts and all reserves.

Both Statements I and II are correct

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Statement I is correct but Statement II is incorrect

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Statement I is incorrect but Statement II is correct

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Both statements are incorrect

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Solution

The correct option is B Statement I is correct but Statement II is incorrect
Capital structure refers but to composition of long term funds that include debts, share capital and preference share capital, Capital structure doesn't include all reserves. Hence, the first and second statement is incorrect.

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Statement - I : Capital structure refers to composition of long-term funds.Statement - II : These include equity share capital, preference share capital, debentures, all debts and all reserves.

Statement - I : Capital structure refers to composition of long-term funds.
Statement - II : These include equity share capital, preference share capital, debentures, all debts and all reserves.