Which of the Following Defines the Term "Additional Funds Needed

question 2

Multiple Choice

Which of the following defines the term "additional funds needed (AFN) "?

• 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 internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
• D) a forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.

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Definitions:

Amylase Activity

The process by which the enzyme amylase breaks down starches into simpler sugars, a key step in carbohydrate digestion.

Starch

is a carbohydrate consisting of a large number of glucose units joined together, serving as a key energy source in many plants and diets.

Enzyme Catalyzes

Refers to the acceleration of a biochemical reaction by a protein enzyme.

Repeatedly

The act of doing something over and over again.