Gratinut Entos, an Automobile Company, Wants to Launch a New

question 113

Multiple Choice

Gratinut Entos, an automobile company, wants to launch a new model of bike that would appeal to young adults. The company issues its own formal IOUs to fund the project. Which of the following sources of long-term funds is being used by Gratinut Entos in the given scenario?

• A) Term loans
• B) Commercial paper
• C) Corporate bonds
• D) Direct investments from owners

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Definitions:

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, indicating the total resources.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including debts, accounts payable, and other liabilities.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation.

Journal

A Journal in accounting is the initial record where financial transactions are entered before they are posted to accounts in the ledger, serving as the primary point of documentation for business activities.