Term "Additional Funds Needed (AFN)" Is Generally Defined as Follows

question 25

Multiple Choice

term "additional funds needed (AFN) " is generally defined as follows:

• A)Funds that are obtained automatically from routine business transactions.
• B)Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.
• C)The amount of assets required per dollar of sales.
• D)The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
• E)A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.

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Definitions:

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries which can restrict blood flow.

Angina Pectoris

A condition marked by severe chest pain due to inadequate blood flow to the heart muscle, often a symptom of coronary artery disease.

Stroke

A medical condition where poor blood flow to the brain results in cell death, causing partial or complete loss of muscle control and, in severe cases, death.

Coronary Artery Disease

A condition characterized by the narrowing or blockage of the coronary arteries, leading to reduced blood flow to the heart muscle.