Which of the Following Is an Internal Source of Funds

question 121

Multiple Choice

Which of the following is an internal source of funds?

• A) retained earnings
• B) net loss
• C) repurchase of debt securities
• D) bank loan

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Definitions:

Paid-In Capital

The total amount of money or value that shareholders have invested in a company through the purchase of its stock.

Retained Earnings

The part of a company's earnings that is reserved or saved, instead of being distributed as dividends to its shareholders.

Par Common Stock

The nominal or face value of a share of common stock, as specified in the corporate charter.

Paid-In Capital

The sum of funds a corporation has obtained from its investors through the sale of stock shares.