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

question 10

Multiple Choice

The 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.

---

Definitions:

Sunburn

Skin damage caused by excessive exposure to ultraviolet rays, leading to redness and pain.

Sunbathing

The act of sitting or lying in the sun for the purpose of getting a tan or for relaxation.

Inhaled Poison

A toxic substance that is breathed into the lungs, potentially causing harm or injury to the body.

Fresh Air

Air that is outdoor, unpolluted, and considered beneficial to breathe in contrast to stale or indoor air.